JAMES D. TAICLET Chairman, President and CEO Lockheed Martin JAY MALAVE Chief Financial Officer Corporation 1st Quarter 2024 Conference Call April 23, 2024 Webcast login at: www.lockheedmartin.com/investor Webcast replay & podcast available by 2:00 p.m. ET April 23, 2024 at: www.lockheedmartin.com/investor ...

Lockheed Martin (LMT) reported $17.2 billion in revenue for the quarter ended March 2024, representing a year-over-year increase of 13.7%. EPS of $6.33 for the same period compares to $6.43 a year ago.The reported revenue represents a surprise of +6.21% over the Zacks Consensus Estimate of $16.19 billion. With the consensus EPS estimate being $5.80, the EPS surprise was +9.14%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Str ...

Lockheed Martin Corporation (LMT) reported first-quarter 2024 adjusted earnings of $6.33 per share, which beat the Zacks Consensus Estimate of $5.80 by 9.1%. The bottom line, however, declined 1.6% from the year-ago quarter's recorded figure of $6.43.The company reported GAAP earnings of $6.39 per share compared with $6.61 in the prior-year period.Operational HighlightsNet sales were $17.20 billion, which surpassed the Zacks Consensus Estimate of $16.19 billion by 6.2%. The top line also increased 13.7% fro ...

Key PointsLockheed Martin had a solid quarter supported by strength in all segments. The healthy balance sheet supports robust capital returns, including dividends and share-reducing buybacks.The company reaffirmed guidance, which may be overly cautious in light of geopolitical conflict and defense spending. 5 stocks we like better than Lockheed MartinLockheed Martin's NYSE: LMT stock price has trended higher for years, supported by robust defense spending and, more recently, conflict in Ukraine and the Mid ...

[First Quarter 2024 Financial Highlights](index=1&type=section&id=Lockheed%20Martin%20Reports%20First%20Quarter%202024%20Financial%20Results) Lockheed Martin reported strong Q1 2024 financial results with increased net sales and free cash flow, supported by a substantial backlog and reaffirmed full-year outlook, despite a slight decrease in net earnings [Q1 2024 Key Financial Metrics](index=1&type=section&id=Summary%20Financial%20Results) Lockheed Martin's Q1 2024 saw increased net sales and stable cash flow, despite a decline in net earnings, with the quarter comprising 13 weeks Q1 2024 vs Q1 2023 Financial Performance | Metric | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **Net Sales** | $17.2 billion | $15.1 billion | | **Net Earnings** | $1.5 billion | $1.7 billion | | **Diluted EPS** | $6.39 | $6.61 | | **Cash from Operations** | $1.6 billion | $1.6 billion | | **Free Cash Flow** | $1.3 billion | $1.3 billion | - The company returned **$1.8 billion** to shareholders through **$780 million** in dividends and **$1.0 billion** in share repurchases[1](index=1&type=chunk)[14](index=14&type=chunk) - The total backlog at the end of the quarter was **$159 billion**, bolstered by significant National Security Space awards[3](index=3&type=chunk) - The first quarter of 2024 comprised **13 weeks**, compared to **12 weeks** for the first quarter of 2023[1](index=1&type=chunk) [Adjusted (Non-GAAP) Financial Results](index=2&type=section&id=Adjusted%20earnings%20before%20income%20taxes%2C%20net%20earnings%20and%20diluted%20EPS) Non-GAAP adjusted net earnings for Q1 2024 decreased to $1.53 billion, or $6.33 per diluted share, compared to the prior year Reconciliation of GAAP to Non-GAAP Earnings | (in millions, except per share data) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **As Reported Diluted EPS (GAAP)** | $6.39 | $6.61 | | Mark-to-market investment gains | ($0.06) | ($0.18) | | **As Adjusted Diluted EPS (Non-GAAP)** | $6.33 | $6.43 | [2024 Financial Outlook](index=4&type=section&id=2024%20Financial%20Outlook) Lockheed Martin reaffirmed its full-year 2024 financial outlook, projecting net sales, diluted earnings per share, and free cash flow within specified ranges Full-Year 2024 Financial Outlook | Metric | 2024 Outlook | | :--- | :--- | | **Net Sales** | $68,500 - $70,000 million | | **Business Segment Operating Profit** | $7,175 - $7,375 million | | **Diluted Earnings Per Share** | $25.65 - $26.35 | | **Free Cash Flow** | $6,000 - $6,300 million | - The financial outlook assumes no significant reduction in customer budgets, continued program funding, and a statutory tax rate of **21%**[12](index=12&type=chunk) [Cash Flow and Capital Deployment](index=5&type=section&id=Cash%20Flows%20and%20Capital%20Deployment%20Activities) Q1 2024 cash from operations and free cash flow remained stable, with significant capital deployment through dividends, share repurchases, and a new debt issuance - Free cash flow in Q1 2024 was **$1.3 billion**, resulting from **$1.6 billion** in cash from operations minus **$378 million** in capital expenditures[14](index=14&type=chunk) - Key capital deployment activities in Q1 2024 included: - Paying cash dividends of **$780 million** - Repurchasing **2.3 million** shares for **$1.0 billion** - Receiving net proceeds of **$2.0 billion** from a new debt issuance[14](index=14&type=chunk) [Segment Results](index=6&type=section&id=Segment%20Results) All four business segments reported Q1 2024 net sales growth and increased total operating profit, despite a decline in Missiles and Fire Control due to a classified program loss [Aeronautics](index=8&type=section&id=Aeronautics) Aeronautics' Q1 2024 net sales grew 9% driven by F-35 and F-16 programs, with operating profit remaining comparable despite F-35 cost adjustments Aeronautics Q1 Performance | (in millions) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **Net Sales** | $6,845 | $6,269 | | **Operating Profit** | $679 | $675 | | **Operating Margin** | 9.9% | 10.8% | - Net sales increase was primarily driven by higher volume on the F-35 program (+$305M), classified programs (+$155M), and the F-16 program (+$60M)[23](index=23&type=chunk) - Operating profit on the F-35 program decreased by **$30 million** due to lower net profit adjustments from higher material costs[24](index=24&type=chunk) [Missiles and Fire Control (MFC)](index=9&type=section&id=Missiles%20and%20Fire%20Control) MFC's Q1 2024 net sales surged 25% due to missile program ramp-ups, but operating profit declined significantly from a classified program loss MFC Q1 Performance | (in millions) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **Net Sales** | $2,993 | $2,388 | | **Operating Profit** | $311 | $377 | | **Operating Margin** | 10.4% | 15.8% | - Sales growth was driven by a **$460 million** increase in tactical and strike missile programs (GMLRS, HIMARS, JASSM) and a **$100 million** increase in integrated air and missile defense programs (PAC-3, THAAD)[26](index=26&type=chunk) - Operating profit decreased significantly due to a **$100 million** reach-forward loss on a classified program option[27](index=27&type=chunk) [Rotary and Mission Systems (RMS)](index=10&type=section&id=Rotary%20and%20Mission%20Systems) RMS Q1 2024 net sales increased 16% driven by IWSS and helicopter programs, with operating profit growing 23% from higher volume and favorable adjustments RMS Q1 Performance | (in millions) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **Net Sales** | $4,088 | $3,510 | | **Operating Profit** | $430 | $350 | | **Operating Margin** | 10.5% | 10.0% | - Sales growth was led by IWSS programs (+$295M), C6ISR programs (+$150M), and Sikorsky helicopter programs (+$100M)[29](index=29&type=chunk) - Operating profit increased by **$80 million**, with **$40 million** from IWSS programs due to higher volume and a favorable profit rate adjustment after retiring technical risk on a radar program[30](index=30&type=chunk) [Space](index=11&type=section&id=Space) Space segment net sales grew 10% in Q1 2024 from strategic and national security programs, with operating profit increasing 16% due to ULA joint venture equity earnings Space Q1 Performance | (in millions) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **Net Sales** | $3,269 | $2,959 | | **Operating Profit** | $325 | $280 | | **Operating Margin** | 9.9% | 9.5% | - Sales growth was driven by strategic and missile defense programs (+$140M) and national security space programs (+$115M)[32](index=32&type=chunk) - Operating profit growth was primarily attributable to a **$45 million** positive swing in equity earnings from the ULA investment, which reported **$15 million** in earnings in Q1 2024 versus a **$15 million** loss in Q1 2023[33](index=33&type=chunk)[34](index=34&type=chunk) [Other Financial Information](index=12&type=section&id=Other%20Financial%20Information) This section details the effective tax rate and defines non-GAAP financial measures used to evaluate underlying business performance [Income Taxes](index=12&type=section&id=Income%20Taxes) The effective income tax rate for Q1 2024 was 15.8%, slightly higher than Q1 2023, benefiting from various tax credits and deductions - The effective tax rate was **15.8%** in Q1 2024 and **15.3%** in Q1 2023[36](index=36&type=chunk) - Tax rates in both periods benefited from R&D tax credits, deductions for foreign derived intangible income, and dividends paid to the company's defined contribution plans[36](index=36&type=chunk) [Use of Non-GAAP Financial Measures](index=12&type=section&id=Use%20of%20Non-GAAP%20Financial%20Measures) Lockheed Martin utilizes non-GAAP financial measures like business segment operating profit and free cash flow to supplement GAAP and aid performance evaluation - Business segment operating profit is used by senior management to evaluate the performance of its business segments[38](index=38&type=chunk) - Free cash flow (cash from operations less capital expenditures) is used to evaluate business performance, overall liquidity, and is a performance goal in incentive plans[40](index=40&type=chunk) - Adjusted earnings and EPS are presented to help investors understand underlying business performance by excluding certain non-operational items[42](index=42&type=chunk) [Supplementary Information](index=14&type=section&id=Supplementary%20Information) This section provides supplementary information, including forward-looking statements, detailed unaudited financial statements, and other operating data like segment backlog and aircraft deliveries [Forward-Looking Statements](index=15&type=section&id=Forward-Looking%20Statements) The company's forward-looking statements are subject to risks and uncertainties, including reliance on U.S. Government contracts, budget uncertainty, and supply chain viability - Key risks include: reliance on U.S. Government contracts, budget uncertainty, F-35 program risks, supplier performance, inflation, and cyber threats[47](index=47&type=chunk)[49](index=49&type=chunk) [Consolidated Financial Statements](index=17&type=section&id=Consolidated%20Financial%20Statements) Unaudited consolidated financial statements provide detailed Q1 2024 figures for earnings, balance sheets, and cash flows, reflecting key financial positions and activities Consolidated Statement of Earnings (Q1 2024 vs Q1 2023) | (in millions) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **Net Sales** | $17,195 | $15,126 | | **Gross Profit** | $1,993 | $2,046 | | **Operating Profit** | $2,029 | $2,037 | | **Net Earnings** | $1,545 | $1,689 | Consolidated Balance Sheet Summary | (in millions) | March 31, 2024 | Dec. 31, 2023 | | :--- | :--- | :--- | | **Total Current Assets** | $22,958 | $20,521 | | **Total Assets** | $54,963 | $52,456 | | **Total Current Liabilities** | $17,699 | $16,937 | | **Total Liabilities** | $48,313 | $45,621 | | **Total Stockholders' Equity** | $6,650 | $6,835 | Consolidated Statement of Cash Flows (Q1 2024 vs Q1 2023) | (in millions) | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | **Net cash provided by operating activities** | $1,635 | $1,564 | | **Net cash used for investing activities** | ($372) | ($259) | | **Net cash provided by (used for) financing activities** | $85 | ($1,412) | [Other Financial and Operating Information](index=22&type=section&id=Other%20Financial%20and%20Operating%20Information) Total company backlog slightly decreased in Q1 2024, with segment-specific changes, and aircraft deliveries included F-16s and C-130Js but no F-35s Backlog by Segment (in millions) | Segment | March 31, 2024 | Dec. 31, 2023 | | :--- | :--- | :--- | | Aeronautics | $57,035 | $60,156 | | Missiles and Fire Control | $31,297 | $32,229 | | Rotary and Mission Systems | $38,030 | $37,726 | | Space | $33,006 | $30,456 | | **Total Backlog** | **$159,368** | **$160,567** | Aircraft Deliveries | Aircraft | Q1 2024 | Q1 2023 | | :--- | :--- | :--- | | F-35 | 0 | 5 | | F-16 | 3 | 1 | | C-130J | 4 | 2 |

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Investors are always looking for stocks that are poised to beat at earnings season and Lockheed Martin Corporation (LMT) may be one such company. The firm has earnings coming up pretty soon, and events are shaping up quite nicely for their report.That is because Lockheed Martin is seeing favorable earnings estimate revision activity as of late, which is generally a precursor to an earnings beat. After all, analysts raising estimates right before earnings — with the most up-to-date information possible — is ...

Analysts on Wall Street project that Lockheed Martin (LMT) will announce quarterly earnings of $5.80 per share in its forthcoming report, representing a decline of 9.8% year over year. Revenues are projected to reach $16.07 billion, increasing 6.3% from the same quarter last year.The consensus EPS estimate for the quarter has undergone a downward revision of 0.3% in the past 30 days, bringing it to its present level. This represents how the covering analysts, as a whole, have reassessed their initial estima ...

Lockheed Martin Corporation (LMT) is slated to release first-quarter 2024 results on Apr 23, before the opening bell.The company delivered an average earnings surprise of 5.27% in the last four quarters. Lower equity earnings and higher interest expenses, amid solid sales volume from LMT’s major segments, are likely to have hurt the company’s first-quarter performance.Let's see how things might have shaped up prior to the announcement.Aeronautics to Post Solid SalesThe Aeronautics segment, which primarily m ...

Amid turbulent times on the global geopolitical scene that has seen escalating tensions in the Middle East, it should not come as a shock that war stocks are rising, including Lockheed Martin (NYSE: LMT), although experts are still cautiously optimistic regarding its price in the following 12 months.Indeed, the shares of Lockheed Martin, a defense and aerospace behemoth with government contracts, are recording growth, particularly in the last month, recovering from a sudden drop in late January this year af ...