Lockheed Martin Corporation (NYSE: NYSE:LMT) has maintained its "Hold" rating with a steady price target of $590.00, as per the latest report from Jefferies.
The defense contractor posted third-quarter earnings per share (EPS) of $6.80, surpassing the estimated $6.50. Year-over-year, revenues saw a modest increase of 1%, although they fell slightly short of expectations by 1%.
Lockheed Martin also adjusted its full-year 2024 revenue guidance upward by 0.4%, setting the new figure at approximately $71.25 billion, up from the previous range of $70.5 billion to $71.5 billion.
This update suggests a nearly flat year-over-year revenue for the fourth quarter, taking into account one less week in the period compared to 2023. The company's EPS forecast for 2024 was also increased by 1% to a midpoint of $26.65, which is marginally higher than both the consensus estimate of $26.53 and Jefferies' own estimate of $26.40.
In terms of individual segments, the Aeronautics division's revenue forecast was lifted by 1% to $28.6 billion, while the Missiles and Fire Control (MFC) segment was set at $12.55 billion, aligning with previous projections. Rotary and Mission Systems (RMS) revenue expectations were adjusted to the lower end at $17.35 billion, consistent with earlier estimates. The Space Systems guidance remained unchanged at $12.75 billion.
In other recent news, Lockheed Martin reported a strong third quarter in 2024, characterized by record-breaking backlog and a slight increase in sales. The company's backlog exceeded $165 billion, propelled by significant orders for precision munitions.
Sales saw a 1% yearly rise to $17.1 billion, while operating margins expanded to 10.9%. Lockheed Martin also demonstrated its commitment to shareholders by increasing its quarterly dividend by 5% to $3.30 and extending its share repurchase authorization.
The company delivered 48 F-35 aircraft during the quarter, bringing the total units delivered to over 1,040. Lockheed Martin's net profit stood at $6.80 per share, with new business orders exceeding $22 billion. The company also raised its 2024 sales forecast to approximately $71.25 billion, marking a 5% increase from 2023.
Despite a few challenges such as a slight decline in space sales and losses in the MFC classified program, the company saw strong demand for its F-35 and F-22 jets and made significant investments in autonomy and AI technologies.
InvestingPro Insights
Lockheed Martin's recent financial performance and guidance adjustments align with several key insights from InvestingPro. The company's revenue growth of 5.33% over the last twelve months, as reported by InvestingPro, supports the modest 1% year-over-year increase mentioned in the article. This growth trajectory is further reflected in the company's decision to adjust its full-year 2024 revenue guidance upward.
InvestingPro Tips highlight that Lockheed Martin has maintained dividend payments for 41 consecutive years and has raised its dividend for 22 consecutive years. This demonstrates the company's financial stability and commitment to shareholder returns, which is particularly noteworthy given the recent upward adjustments in EPS forecasts.
The company's market capitalization of $135.37 billion and a P/E ratio of 20.85 suggest that investors are pricing in expectations of continued strong performance. This is in line with the article's mention of Lockheed Martin surpassing EPS estimates in the third quarter.
For investors seeking a deeper understanding of Lockheed Martin's financial health and future prospects, InvestingPro offers 13 additional tips, providing a comprehensive analysis of the company's position in the Aerospace & Defense industry.
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