Core Viewpoint - Lockheed Martin is well-positioned to continue its earnings-beat streak, particularly given its recent performance in the aerospace and defense industry [1]. Earnings Performance - In the most recent quarter, Lockheed Martin reported earnings of $6.84 per share, exceeding the expected $6.47 per share, resulting in a surprise of 5.72% [2]. - For the previous quarter, the company reported $7.11 per share against an expectation of $6.45 per share, achieving a surprise of 10.23% [2]. Earnings Estimates - Recent estimates for Lockheed Martin have been increasing, with a positive Earnings ESP of +1.98%, indicating bullish sentiment among analysts regarding the company's earnings prospects [3][6]. - The combination of a positive Earnings ESP and a Zacks Rank of 3 (Hold) suggests a high likelihood of another earnings beat [6]. Predictive Metrics - Stocks with a positive Earnings ESP and a Zacks Rank of 3 or better have historically produced positive surprises nearly 70% of the time [4]. - The Earnings ESP metric compares the Most Accurate Estimate to the Zacks Consensus Estimate, reflecting the latest analyst revisions prior to earnings releases [5]. Future Outlook - Lockheed Martin's next earnings report is anticipated to be released on January 28, 2025, and the current positive indicators suggest a favorable outcome [6].

Core Viewpoint - Lockheed Martin (LMT) is anticipated to report a year-over-year decline in earnings due to lower revenues for the quarter ended December 2024, with the consensus outlook indicating a significant impact on its near-term stock price based on actual results compared to estimates [1][2]. Earnings Expectations - The upcoming earnings report is expected to show quarterly earnings of $6.52 per share, reflecting a year-over-year decrease of 17.5%, while revenues are projected to be $18.85 billion, a slight decline of 0.1% from the previous year [3]. - The consensus EPS estimate has been revised down by 0.51% over the last 30 days, indicating a reassessment by analysts [4]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that the Most Accurate Estimate for Lockheed is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +1.98%, indicating a likelihood of beating the consensus EPS estimate [10][11]. - Historical performance shows that Lockheed has beaten consensus EPS estimates in the last four quarters, with a notable surprise of +5.72% in the last reported quarter [12][13]. Market Reaction - The stock may experience upward movement if the earnings report exceeds expectations, while a miss could lead to a decline. The sustainability of any price change will depend on management's commentary during the earnings call [2][14]. - Despite the potential for an earnings beat, other factors may influence stock performance, making it essential to consider the broader context [14][16].

Core Viewpoint - Lockheed Martin Corporation's unit, Rotary and Mission Systems, has secured a $19 million modification contract to support the MH-60S aircraft program, expected to be completed by March 2028 [1][2]. Summary by Sections Contract Details - The contract includes the provision of two initial structural modification kits for the MH-60S aircraft, non-recurring engineering support, and components that are not expected to meet the current service life [2]. - The work will be executed in Stratford, CT, and Owego, NY [2]. Market Opportunities - Rising military conflicts, terrorism, and border disputes, along with rapid technological advancements in combat aircraft, are driving nations to increase defense spending [3]. - Mordor Intelligence forecasts a compound annual growth rate of 5.2% for the global military aviation market from 2024 to 2030 [3]. Lockheed Martin's Position - Lockheed Martin's robust portfolio of combat jets, including the F-16, F-22, F-21, and MH-60S, positions the company well for growth [4]. - As of September 29, 2024, Lockheed's total backlog was $165.69 billion [4]. Other Defense Stocks - Northrop Grumman Corporation (NOC) has a long-term earnings growth rate of 19% and a projected sales growth of 3.4% for 2025 [5][6]. - Embraer (ERJ) is expected to see an 18.3% sales growth in 2025, with a recent average earnings surprise of 127.28% [6][7]. - Boeing Company (BA) has a long-term earnings growth rate of 19.3% and a projected sales improvement of 22.1% for 2025 [8]. Stock Performance - Lockheed Martin's shares have increased by 2.9% over the past six months, contrasting with a 1.7% decline in the industry [9].

Group 1 - Lockheed Martin's stock closed at $484.46, with a +0.27% change from the previous day, outperforming the S&P 500's gain of 0.12% [1] - Over the past month, Lockheed Martin shares declined by 1.73%, which is worse than the Aerospace sector's loss of 1.36% but better than the S&P 500's loss of 3.45% [1] Group 2 - Lockheed Martin is set to release its earnings report on January 28, 2025, with an expected EPS of $6.58, reflecting a 16.71% decline year-over-year [2] - The consensus revenue estimate for the upcoming quarter is $18.85 billion, indicating a slight decrease of 0.11% compared to the same quarter last year [2] Group 3 - Recent changes in analyst estimates for Lockheed Martin suggest a reflection of short-term business trends, with positive revisions indicating analysts' confidence in the company's performance [3] - The Zacks Rank system, which incorporates estimate changes, currently ranks Lockheed Martin at 3 (Hold) [5] Group 4 - Lockheed Martin's Forward P/E ratio is 17.24, which is lower than the industry's Forward P/E of 17.73, indicating a valuation discount [6] - The company has a PEG ratio of 3.88, compared to the Aerospace - Defense industry's average PEG ratio of 1.4 [7] Group 5 - The Aerospace - Defense industry, which includes Lockheed Martin, holds a Zacks Industry Rank of 159, placing it in the bottom 37% of over 250 industries [8]

Geopolitical tensions are probably higher than at any time in recent memory, with multiple conflicts across the world-leading governments to expand military capabilities, and raise defensive budgets. This has led many companies in the defence sector to see impressive surges in recent years, butGordon is a freelance investment writer from Glasgow, Scotland. With a Masters Degree in Civil Engineering, he also works in Asset Management, and runs a financial education company called Oak Investing with a wide fo ...

Core Viewpoint - Lockheed Martin Corporation (NYSE: LMT) experienced a significant price increase of 35.59%, reaching $618.95 in 2024, but subsequently fell to $468, with expectations for future quarters indicating a potential for recovery and a "buy" recommendation [1]. Group 1 - The stock price of Lockheed Martin rose by 35.59% to $618.95 in 2024 [1]. - The stock later fell to $468, indicating volatility in its market performance [1]. - The analysis suggests a positive outlook for the coming quarters, supporting a "buy" position for investors [1].

Analyst Downgrade and Price Target Adjustment - Deutsche Bank analysts downgraded Lockheed Martin stock from Buy to Hold with a price target of $523, representing a 14% reduction from the previous target [1] - The downgrade was influenced by China's progress in developing a 6th-generation fighter jet, which could impact Lockheed Martin's competitive position in the defense sector [1] Investment Research Service Overview - The Aerospace Forum is a leading aerospace, defense, and airline investment research service on Seeking Alpha, offering access to evoX Data Analytics, an in-house developed data analytics platform [1] - The service aims to uncover investment opportunities in the aerospace, defense, and airline industries, leveraging data-driven analysis and industry expertise [1] Analyst Background and Methodology - Dhierin, the lead analyst, has a background in aerospace engineering and provides detailed analysis of the aerospace and defense industry, focusing on growth prospects and investment implications [1] - The investment ideas are based on data-informed analysis, with direct access to data analytics monitors provided to subscribers [1]

Join iREIT on Alpha today to get the most in-depth research that includes REITs, mREITs, Preferreds, BDCs, MLPs, ETFs, and other income alternatives. 438 testimonials and most are 5 stars. Nothing to lose with our FREE 2-week trial .As most of my readers may know, I started buying defense contractors during the pandemic, when their stock prices wereAnalyst’s Disclosure: I/we have a beneficial long position in the shares of LMT, NOC either through stock ownership, options, or other derivatives. I wrote this ...

Core Viewpoint - The investment potential in Lockheed Martin stock is significantly influenced by the sales performance of its F-35 fighter jets, which are projected to have a total lifetime value of $1 trillion [1] Group 1: Recent Contracts and Revenue Impact - Lockheed Martin received a major contract on December 20 for 145 F-35 jets valued at $11.8 billion, with deliveries scheduled by June 2027, translating to approximately $4.7 billion in annual revenue [2] - Additional contracts awarded on December 23 totaled $3.7 billion, covering logistics support and engineering services for the F-35, contributing to a total of $15.5 billion in new revenue [3][4] - The $8.4 billion expected in 2025 from these contracts represents 30% of the Aeronautics division's revenue in 2023 and 12.4% of Lockheed Martin's total revenue for that year [5] Group 2: Growth Projections and Market Sentiment - The front-loaded nature of the revenue means that while 2025 will see a significant increase, growth in 2026 and 2027 will be smaller, yet still indicating nearly 7% growth over 2023 revenue, which is double the current analyst forecasts [6] - The stock is currently priced at 17 times trailing earnings, and a growth rate of mid-double-digits is necessary for it to be considered a good investment opportunity [9] - If Lockheed can achieve earnings growth in the 12% range, combined with a 2.7% dividend yield, the stock may become more attractive to investors [10]

Lockheed Martin's F-35 Contract - Lockheed Martin's Aeronautics unit secured a $41.6 million modification contract for the F-35 fighter aircraft from the Naval Air Systems Command, with work primarily in Fort Worth, TX, and completion expected by March 2028 [1][2] - The contract involves engineering, integration support, hardware, and installation for flight test instrumentation modifications to F-35 production aircraft [2] F-35's Market Position and Demand - The F-35 is recognized as the most advanced fifth-generation fighter jet, featuring cutting-edge technology, advanced sensors, and communication systems that enhance situational awareness across multiple domains [4] - Lockheed Martin has delivered 1,040 F-35 aircraft as of Sept 30, 2024, reflecting strong global demand and its position as a cornerstone of modern air defense systems [5] Industry Trends and Growth Prospects - Global defense spending is rising due to military conflicts, terrorism, and border disputes, driving demand for advanced combat jets like the F-35 [3][6] - The global fighter aircraft market is projected to grow at a compound annual growth rate of 3.7% from 2024 to 2029, benefiting Lockheed Martin and other defense companies [6][7] Competitor Opportunities - Northrop Grumman (NOC) is a key player in the fighter aircraft market, with a long-term earnings growth rate of 19% and a 3.4% projected sales growth for 2025 [8][9] - Embraer (ERJ) offers advanced combat aircraft like the A-29 Super Tucano and C-390 Millennium, with a projected 18.3% sales growth for 2025 and a strong earnings surprise history [9][10] - Textron (TXT) provides advanced flight training systems and aircraft like the Beechcraft AT-6E Wolverine, with a long-term earnings growth rate of 10.1% and a 7.4% projected sales growth for 2025 [11][12] Lockheed Martin's Stock Performance - Lockheed Martin's stock has gained 1.7% in the past six months, outperforming the industry's 0.9% decline [13]