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Lockheed's Q4 Earnings Beat Estimates, Revenues Decline Y/Y
LMTLockheed Martin(LMT) ZACKS·2025-01-28 18:10

Core Insights - Lockheed Martin Corporation (LMT) reported fourth-quarter 2024 adjusted earnings of 7.67pershare,exceedingtheZacksConsensusEstimateof7.67 per share, exceeding the Zacks Consensus Estimate of 6.60 by 16.2%, although it was a slight decline of 0.4% from the previous year's adjusted figure of 7.70pershare[1][2]−Thecompanyachieved2024adjustedearningsof7.70 per share [1][2] - The company achieved 2024 adjusted earnings of 28.47 per share, surpassing the year-ago figure of 27.69andtheZacksConsensusEstimateof27.69 and the Zacks Consensus Estimate of 26.70 [2] Operational Highlights - Net sales for the fourth quarter were 18.62billion,missingtheZacksConsensusEstimateof18.62 billion, missing the Zacks Consensus Estimate of 18.85 billion by 1.2% and down 1.3% from 18.87billioninthesamequarterlastyear[3]−Forthefullyear2024,salesreached18.87 billion in the same quarter last year [3] - For the full year 2024, sales reached 71.04 billion, an increase from 67.57billionin2023,butfellshortoftheZacksConsensusEstimateof67.57 billion in 2023, but fell short of the Zacks Consensus Estimate of 71.27 billion [3] Backlog Information - As of December 31, 2024, LMT's backlog was 176.04billion,upfrom176.04 billion, up from 160.57 billion a year earlier, exceeding the projected backlog of 171.32billion[4]−TheAeronauticssegmentaccountedfor171.32 billion [4] - The Aeronautics segment accounted for 62.76 billion of the backlog, while the Missiles and Fire Control segment contributed 38.78billion[4]SegmentPerformance−∗∗Aeronautics∗∗:Salesincreasedby5.238.78 billion [4] Segment Performance - **Aeronautics**: Sales increased by 5.2% year over year to 8.01 billion, driven by higher sales volume from the F-35 program, but operating profit dropped 43% to 434million[5]−∗∗MissilesandFireControl∗∗:Quarterlysalesrose7.6434 million [5] - **Missiles and Fire Control**: Quarterly sales rose 7.6% to 3.41 billion, but the segment incurred an operating loss of 804millioncomparedtoaprofitof804 million compared to a profit of 395 million in the prior year [6] - Space: Sales decreased by 13% to 2.94billionduetolowersalesfromnationalsecurityspaceprograms,withoperatingprofitdown7.82.94 billion due to lower sales from national security space programs, with operating profit down 7.8% to 283 million [7] - Rotary and Mission Systems: Revenues fell 9.6% to 4.26billion,primarilyduetolowersalesfromSikorskyhelicopterprograms[8][9]FinancialCondition−Cashandcashequivalentstotaled4.26 billion, primarily due to lower sales from Sikorsky helicopter programs [8][9] Financial Condition - Cash and cash equivalents totaled 2.48 billion at the end of 2024, up from 1.44billionattheendof2023[10]−Cashfromoperatingactivitieswas1.44 billion at the end of 2023 [10] - Cash from operating activities was 6.97 billion, down from 7.92billionayearago,whilelong−termdebtincreasedto7.92 billion a year ago, while long-term debt increased to 19.63 billion from 17.29billion[10]2025Guidance−Lockheedexpectssalesintherangeof17.29 billion [10] 2025 Guidance - Lockheed expects sales in the range of 73.75-74.75billionfor2025,withtheZacksConsensusEstimateat74.75 billion for 2025, with the Zacks Consensus Estimate at 73.99 billion [11] - The company projects adjusted earnings per share between 27.00−27.00-27.30, while the consensus estimate is at 27.78pershare[11]−Expectedcashfromoperationsisprojectedtobebetween27.78 per share [11] - Expected cash from operations is projected to be between 8.50-8.70billion,withcapitalexpenditurearound8.70 billion, with capital expenditure around 1.90 billion [12]