Giant in defense Lockheed Martin (LMT) defied expectations for quarterly results on Tuesday morning. LMT stock broke after the earnings report.
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The maker of F-22 and F-35 fighter jets has been a heavy supplier of missiles and other military equipment in Ukraine’s fight against a Russian invasion last year. Lockheed Martin provided High Mobility Artillery Rocket Systems (HMARS) and ammunition, Javelin and Stinger missiles in the early stages of the attack. In February, US officials rejected requests for Army Tactical Missile systems (ATACMS), manufactured by Lockheed. And the Pentagon is blocking the delivery of Lockheed Martin and General Dynamics (GD) developed F-16 fighter jets to avoid direct confrontation with Russia.
Meanwhile, China has blacklisted Lockheed Martin and Raytheon (RTX) in February in retaliation for arms sales to Taiwan.
On Monday, the White House informed Congress that it plans to sell $259 million in F-16 equipment upgrades to Turkey, Reuters reported. The new, smaller package differs from the proposed $20 billion deal on new jets and 80 modernization kits that Turkey requested by October 2021.
Lockheed Revenues
result: Lockheed Martin reported adjusted earnings of $6.43 per share, unchanged from last year. GAAP earnings, excluding mark-to-market investment gains, rose 2.6% to $6.61 per share. Net sales rose to $15.126 billion from $14.96 billion.
Cash flow from operations was $1.56 billion with free cash flow of $1.27 billion.
Expectations: Analysts polled by FactSet expected Lockheed Martin earnings to decrease by 6% to $6.05 per share Tuesday while earnings inched to $15 billion from $14.96 billion a year ago. Lockheed Martin’s revenue and earnings growth accelerated in the two prior quarters with mid-single-digit gains.
view: Lockheed guided full-year earnings between $26.60 per share and $26.90 per share on $65 billion to $66 billion in net sales. For the year, analysts see earnings jumping 24% to $26.91 per share while revenue fell 0.36% to $65.746 billion.
LMT Stock
LMT stock surged 3% early Tuesday after the results, surpassing the 499.05 buy point for its flat base. Shares held above their 50-day and 200-day moving averages and retook their 10-day line on Tuesday. The current buy zone for the pattern reaches 524.
Lockheed Martin has a solid 85 EPS Rating, having posted just one decline in earnings over the past two years. Although its relative strength line is not high Lockheed Martin still has a strong 86 RS Rating. LMT stock has a 90 Composite Rating out of the best possible 99, which combines several technical indicators into one easy-to-read score.
Shares have risen nearly 13% in the past three months and are up 3.8% this year.
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