Lockheed's Q4 Earnings Beat Estimates, Revenues Decline Y/Y

Core Insights - Lockheed Martin Corporation (LMT) reported fourth-quarter 2024 adjusted earnings of $7.67 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 $7.70 per share [1][2] - The company achieved 2024 adjusted earnings of $28.47 per share, surpassing the year-ago figure of $27.69 and the Zacks Consensus Estimate of $26.70 [2] Operational Highlights - Net sales for the fourth quarter were $18.62 billion, missing the Zacks Consensus Estimate of $18.85 billion by 1.2% and down 1.3% from $18.87 billion in the same quarter last year [3] - For the full year 2024, sales reached $71.04 billion, an increase from $67.57 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 $176.04 billion, up from $160.57 billion a year earlier, exceeding the projected backlog of $171.32 billion [4] - The Aeronautics segment accounted for $62.76 billion of the backlog, while the Missiles and Fire Control segment contributed $38.78 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 $434 million [5] - Missiles and Fire Control: Quarterly sales rose 7.6% to $3.41 billion, but the segment incurred an operating loss of $804 million compared to a profit of $395 million in the prior year [6] - Space: Sales decreased by 13% to $2.94 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 $4.26 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 $1.44 billion at the end of 2023 [10] - Cash from operating activities was $6.97 billion, down from $7.92 billion a year ago, while long-term debt increased to $19.63 billion from $17.29 billion [10] 2025 Guidance - Lockheed expects sales in the range of $73.75-$74.75 billion for 2025, with the Zacks Consensus Estimate at $73.99 billion [11] - The company projects adjusted earnings per share between $27.00-$27.30, while the consensus estimate is at $27.78 per share [11] - Expected cash from operations is projected to be between $8.50-$8.70 billion, with capital expenditure around $1.90 billion [12]