Core Insights - Lockheed Martin Corporation (LMT) is set to release its third-quarter 2025 results on October 21, with a four-quarter average earnings surprise of 12.27% expected due to strong sales across all business segments despite charges related to classified programs [1][8]. Business Segment Performance - **Aeronautics**: Anticipated to report revenues of $6,977 million, reflecting a 7.6% increase year-over-year, driven by higher sales volume from the F-35 jet program [2]. - **Missiles and Fire Control (MFC)**: Expected revenues of $3,544 million, indicating an 11.6% rise from the previous year, supported by increased production of tactical and strike missile programs [3]. - **Rotary and Mission Systems (RMS)**: Projected revenues of $4,737.2 million, representing an 8.5% growth year-over-year, bolstered by the CH-53K helicopter program [4]. - **Space**: Forecasted revenues of $3,235 million, showing a 5.2% increase from the prior year, driven by commercial civil space programs and missile defense initiatives [5]. Overall Financial Outlook - The total sales estimate for LMT is $18.56 billion, reflecting an 8.5% improvement from the previous year, with all segments expected to show year-over-year sales growth [9][10]. - The backlog is projected to increase by 6% year-over-year to $175.70 billion, indicating strong future demand [6]. Earnings Estimates - The consensus estimate for LMT's third-quarter earnings is $6.32 per share, which represents a decline of 7.6% from the prior year [11]. - The Earnings ESP for LMT is -1.10%, suggesting that the model does not predict an earnings beat this time [12]. Industry Comparisons - Other industry players such as GE Aerospace, RTX Corporation, and Embraer are also set to report their earnings, with varying growth expectations and earnings ESPs, indicating a competitive landscape [14][15][16].

Core Insights - Rising global demand for satellite-based communications, Earth observation, and cybersecurity systems is driving the space technology market, benefiting Lockheed Martin's Space segment through major contracts [1][9] - Lockheed's space business unit is involved in designing and testing lunar and deep space exploration capabilities, securing contracts for various space capabilities including Mars exploration and weather satellites [2][9] - The space business segment registered a 4% revenue growth in Q2 2025 after previous declines, driven by satellite, missile-defense, and space exploration contracts [3][9] Revenue Trends - Prior to Q2 2025, Lockheed's Space segment experienced declining revenues in 2024 and early 2025, with a 2% year-over-year sales drop in Q1 2025 and a 13% decline in Q4 2024 due to slower production and program delays [4][9] - The near-term challenges include delays in the Artemis mission, affecting Orion's revenue cadence, but long-term prospects remain solid with over $3 billion annual demand for Next Gen OPIR satellites and substantial Artemis program funding [5][9] Competitive Landscape - Other defense stocks like Boeing and L3Harris Technologies are also involved in space programs, with Boeing being the prime contractor for the U.S. Space Launch System and L3Harris supporting the Artemis II mission [6][7] Market Performance - Lockheed Martin's shares have lost 12.3% year-to-date, contrasting with the industry's 27.3% growth [8] - The company's shares are trading at a relative discount, with a forward 12-month Price/Earnings ratio of 15.67X compared to the industry's average of 27.55X [10]

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% increase from the same quarter last year [2]. - The consensus estimate for earnings per share is $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% over the last four quarters [2]. Segment Performance - The Aeronautics segment, contributing nearly 40% to LMT's revenue, is expected to show strong sales driven by increased production and sustainment contracts for the F-35 jet program, with revenues estimated at $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].