Should You Buy, Hold or Sell Lockheed Stock Before Q1 Earnings Release?

Core Viewpoint - Lockheed Martin Corporation (LMT) is expected to report first-quarter 2025 results on April 22, with revenue estimates showing a slight increase while earnings per share are projected to decline marginally compared to the previous year [1][2]. Financial Performance - The Zacks Consensus Estimate for LMT's revenues is $17.76 billion, reflecting a 3.3$6.32, indicating a 0.1% decrease from $6.33 reported in the prior-year quarter [2]. - LMT has a history of exceeding earnings estimates, with an average surprise of 10.33$6,983.6 million, a 2% rise year-over-year [8][9]. - The Missiles and Fire Control (MFC) segment is projected to see a revenue increase of 7.2% to $3,209.4 million, benefiting from production ramp-ups of various missile programs [11][12]. - The Rotary and Mission Systems (RMS) segment is also expected to perform well, with revenues estimated at$4,302.8 million, reflecting a 5.3% growth from the previous year [12][13]. - Conversely, the Space segment is anticipated to decline by 1.4% to $3,223.3 million due to lower sales from the Orion program and classified projects [10]. Market Context - LMT's stock has underperformed, declining 4.5% year-to-date, while the aerospace-defense industry has seen a 2.6% increase [15]. - In contrast, competitors like Northrop Grumman and General Dynamics have experienced stock increases of 15.2% and 4.8%, respectively [17]. - LMT is currently trading at a forward price/earnings ratio of 16.66, lower than the industry average of 23.49, indicating a potential valuation opportunity [18]. Investment Outlook - The global defense landscape has prompted increased defense spending, which is expected to positively impact LMT's backlog and overall performance [19]. - LMT offers a dividend yield of 2.84%, surpassing the S&P 500's yield of 1.40%, which may attract income-focused investors [20]. - However, the company's elevated long-term debt-to-capital ratio raises concerns among investors [20].