Lockheed Martin Prepares for Q1 Earnings Release Amid Mixed Performance

Lockheed Martin Corporation (LMT), a leading aerospace and defense firm with a market capitalization of $101.4 billion, offers a wide range of advanced technology systems and services across four main segments: Aeronautics, Missiles and Fire Control (MFC), Rotary and Mission Systems (RMS), and Space. These segments collectively cover military aircraft, missile defense, helicopters, space systems, and cybersecurity solutions.

Upcoming Earnings Announcement

The Bethesda, Maryland-based company is set to release its fiscal Q1 2025 earnings before the market opens on Tuesday, April 22. Analysts project that LMT will report a profit of $6.42 per share, reflecting a 1.4% increase from $6.33 per share reported in the same quarter last year. Recently, Lockheed Martin has consistently exceeded Wall Street earnings estimates, achieving a notable 16.2% beat in the consensus EPS for Q4 2024.

Fiscal Projections and Future Growth

Looking ahead to fiscal 2025, analysts anticipate the world’s largest defense contractor will report an EPS of $27.15, a decrease of 4.6% from $28.47 in fiscal 2024. Nonetheless, the EPS is expected to rebound, with a forecasted growth of 9.1% to reach $29.63 in fiscal 2026.

Stock Performance Review

Over the past 52 weeks, Lockheed Martin’s shares have declined by 7.6%, underperforming compared to the S&P 500 Index ($SPX), which saw a 1.4% drop. However, LMT fared slightly better than the Industrial Select Sector SPDR Fund’s (XLI) 7.7% decline in the same timeframe.

Challenges and Recent Events

Despite reporting a stronger-than-expected Q4 2024 adjusted EPS of $7.67, Lockheed Martin’s stock fell by 9.2% on January 28. The drop was attributed to a GAAP EPS of only $2.22, which fell significantly short of the $6.62 forecast, largely due to $1.7 billion in pre-tax losses from classified programs. Additionally, revenue was reported at $18.6 billion, missing projections, while free cash flow sharply decreased to $441 million. The Aeronautics division’s operating profit fell by 43%, and MFC experienced a substantial shift from a $395 million profit to an $804 million loss resulting from setbacks in classified projects.

Further compounding these challenges, the stock plunged 5.8% on March 21 after Lockheed Martin lost a $20 billion F-47 fighter jet contract to Boeing. Ongoing concerns about F-35 program cost overruns and increased scrutiny of defense spending under the new Department of Government Efficiency (DOGE) program have added to market pressures.

Analyst Consensus and Current Ratings

The consensus among analysts regarding Lockheed Martin’s stock is cautiously optimistic. Overall, it holds a “Moderate Buy” rating. Out of 22 analysts monitoring the stock, nine suggest a “Strong Buy,” 12 recommend “Hold,” and one advises “Strong Sell.” Currently, LMT is trading below the average analyst price target of $525.73.

On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information, please view the Barchart Disclosure Policy here.

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