Lockheed Martin beat earnings and revenue expectations for the third quarter. The company is one of the biggest companies in the aerospace, defense, security, and technologies industry, and is the largest U.S. defense contractor.
Lockheed Martin’s earnings per share came in at $5.66, handily topping analysts’ expectations of $5.03 .
Net sales of $15.17 billion in the quarter also exceeded analysts’ estimate of $14.98.
Sales from Lockheed’s Aeronautics segment grew +10% year-over-year for the quarter, while those from Missiles & Fire Control increased +14%. Space System segment had +5% higher sales – particularly on the back of government satellite programs, Global Positioning System (GPS) III , strategic and missile defense programs. On the other hand, Rotary & Mission Systems experienced a -4% year-over-year decline in sales.
As of Sep 29, 2019, Lockheed had $137.4 billion in the backlog, up +0.5% from $136.7 billion at the end of second quarter 2019.
In the third quarter, the company paid dividends worth $621 million to its shareholders. The year-ago figure was $569 million.
Looking ahead, Lockheed raised its full-year earnings per share guidance to $21.55 (vs. prior $20.85-$21.15 range) , while analysts expect $21.22 (based on Zacks consensus estimate). Revenue guidance for the year has been partially raised to $59.10 billion (vs. prior guided range $58.25-$59.75 billion), while analysts’ project $59.31 billion (based on Zacks consensus estimate).
LMT saw its Momentum Indicator move above the 0 level on April 15, 2024. This is an indication that the stock could be shifting in to a new upward move. Traders may want to consider buying the stock or buying call options. Tickeron's A.I.dvisor looked at 89 similar instances where the indicator turned positive. In of the 89 cases, the stock moved higher in the following days. The odds of a move higher are at .
LMT moved above its 50-day moving average on March 19, 2024 date and that indicates a change from a downward trend to an upward trend.
The 10-day moving average for LMT crossed bullishly above the 50-day moving average on March 18, 2024. This indicates that the trend has shifted higher and could be considered a buy signal. In of 13 past instances when the 10-day crossed above the 50-day, the stock continued to move higher over the following month. The odds of a continued upward trend are .
The 50-day moving average for LMT moved above the 200-day moving average on April 18, 2024. This could be a long-term bullish signal for the stock as the stock shifts to an upward trend.
Following a 3-day Advance, the price is estimated to grow further. Considering data from situations where LMT advanced for three days, in of 326 cases, the price rose further within the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 280 cases where LMT Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
The 10-day RSI Indicator for LMT moved out of overbought territory on April 03, 2024. This could be a bearish sign for the stock. Traders may want to consider selling the stock or buying put options. Tickeron's A.I.dvisor looked at 37 similar instances where the indicator moved out of overbought territory. In of the 37 cases, the stock moved lower in the following days. This puts the odds of a move lower at .
The Stochastic Oscillator has been in the overbought zone for 1 day. Expect a price pull-back in the near future.
The Moving Average Convergence Divergence Histogram (MACD) for LMT turned negative on April 09, 2024. This could be a sign that the stock is set to turn lower in the coming weeks. Traders may want to sell the stock or buy put options. Tickeron's A.I.dvisor looked at 44 similar instances when the indicator turned negative. In of the 44 cases the stock turned lower in the days that followed. This puts the odds of success at .
Following a 3-day decline, the stock is projected to fall further. Considering past instances where LMT declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
LMT broke above its upper Bollinger Band on March 27, 2024. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating very strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is slightly undervalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (16.051) is normal, around the industry mean (6.558). P/E Ratio (16.555) is within average values for comparable stocks, (34.899). LMT's Projected Growth (PEG Ratio) (4.498) is very high in comparison to the industry average of (1.974). Dividend Yield (0.027) settles around the average of (0.017) among similar stocks. P/S Ratio (1.695) is also within normal values, averaging (4.534).
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating low risk on high returns. The average Profit vs. Risk Rating rating for the industry is 71, placing this stock better than average.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating fairly steady price growth. LMT’s price grows at a lower rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to worse than average earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The average fundamental analysis ratings, where 1 is best and 100 is worst, are as follows
a manufacturer of components and systems for aerospace and defense use
Industry AerospaceDefense