Security and Aerospace company Lockheed Martin (NYSE: LMT) will be reporting earnings this Thursday before market hours. Here’s what investors should know.
Lockheed Martin missed analysts’ revenue expectations last quarter, reporting revenues of $18.02 billion, flat year on year. It was a slower quarter for the company, with a significant miss of analysts’ EPS estimates and full-year revenue guidance slightly missing analysts’ expectations.
Is Lockheed Martin a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting Lockheed Martin’s revenue to grow 6.5% year on year, improving from its flat revenue in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. Lockheed Martin has missed Wall Street’s revenue estimates multiple times over the last two years.
Looking at Lockheed Martin’s peers in the aerospace and defense segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Northrop Grumman delivered year-on-year revenue growth of 5.1%, beating analysts’ expectations by 0.5%, and AAR reported revenues up 26.1%, topping estimates by 3.9%.
Read our full analysis of Northrop Grumman’s results here and AAR’s results here.
In the last year or so, investors have shifted their focus from one macro dynamic to the next (AI disintermediation and AI investment to geopolitical conflict, interest rates, and the health of the wider economy). While some of the aerospace and defense stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2.8% on average over the last month. Lockheed Martin is up 2.9% during the same time and is heading into earnings with an average analyst price target of $606.68 (compared to the current share price of $508.00).
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