beat Wall Street’s second-quarter earnings expectations – with one caveat – and raised its earnings forecast for the full year. Still, stocks fell on Monday.
For the quarter, Lockheed (ticker: LMT) reported earnings per share of $ 6.52 on $ 17 billion in sales, in line with Wall Street expectations of $ 6.53 in earnings per share for $ 17 billion in sales. sales. But Lockheed recorded a charge of $ 0.61 per share related to “performance issues encountered on a classifieds program” in its Aeronautics jet manufacturing franchise. These types of expenses, referred to as special charges by Lockheed, are generally not repeated.
Lockheed raised its profit forecast for the full year when it released its first and second quarter figures.
“Lockheed’s execution over the past few years has been so good that we can’t even remember the last time we saw the company take operating costs,” wrote Rob Stallard, analyst at Vertical Research. Partners, in a report released on Monday. “We imagine that investors were expecting the usual ‘beat and increase’ performance for the second quarter, and therefore today’s line result with no change in operating guidance is likely to prove disappointing. ”
Sounds like a good call. Lockheed shares lost more than 3% at the start of the session. the
Dow Jones Industrial Average
were pretty much flat. But Stallard recommends buying the downside: “If the stock was selling strong, that could be a good entry point. He is pricing Buy stocks and has a target price of $ 443 for the stock.
“In my first year at the helm of our company, I am proud of the extraordinary determination shown by our 114,000 team members to overcome the challenges of the pandemic to support our customers, our nation and our allies. . ” said James Taiclet, Chairman, President and CEO of Lockheed Martin. “Our teams continue to deliver key platform programs while advancing technologies essential to 21st century deterrence and scientific discovery. ”
Taiclet seems happy. Sales grew in each of the business segments: aeronautics, missiles, helicopters and space systems. Total sales increased about 5% year-on-year.
Lockheed management has scheduled a conference call for analysts and investors at 11 a.m. EST. Investors will want to hear about the defense budget and its impact on Lockheed’s sales as well as profit margin prospects.
Year-to-date, Lockheed stock is up 7.3%, behind the comparable gain of 17.5% in
Lockheed stock, however, is trading at 13.6 times estimated earnings in 2022. The S&P 500 is trading at 20.5 times estimated earnings in 2022.
Write to Al Root at [email protected]