Because Lockheed Martin’s accounts are skyrocketing
In the first quarter of the year Lockheed Martin recorded an increase in revenues thanks to strong demand in the defense sector, among which the F-35 program stands out. Facts, numbers and insights
Growth in defense budgets swells Lockheed Martin's quarterly earnings beat estimates.
The world's largest military contractor reported a nearly 14% increase in first-quarter sales on Tuesday, as simmering geopolitical tensions push some countries to increase defense spending, driving demand for new weapons, Reuters reports.
And on Wall Street the stock rose by 1.5% after a profit of 6.39 dollars per share on revenues of 17.2 billion dollars, against a consensus of 5.83 dollars on 16.02 billion.
All the details from Lockheed Martin's quarterly.
DOUBLE-DIGIT GROWTH IN LOCKHEED MARTIN REVENUE DOWN BY DEFENSE
Quarterly net sales rose to $17.2 billion from $15.13 billion reported last year, beating consensus estimates of $16 billion.
All four business units increased sales in the quarter, boosting overall revenue by 14%, Bloomberg highlights.
Revenue in the missile unit rose 25.3% to nearly $3 billion, driven by strong demand for Himars and GMLRS missile systems, key weapons used by Ukraine in its conflict with Russia, Reuters reports.
IT ALSO DRIVES THE F-35 PROGRAM
As regards the aeronautical business unit, the largest of the company which produces F-35 combat aircraft, revenues stood at 6.85 billion dollars, an increase of 9.2%.
However, as international demand for the F-35 rises, the Pentagon has suspended deliveries of the aircraft configured with the latest software – known as the TR-3 – pending completion of testing. Since the government withholds about $7 million per plane, the delay represents a liquidity hurdle for Lockeed of about $700 million to $840 million in 2024, Bloomberg Intelligence further notes.
“We remain exceptionally focused on executing the F-35 program, working with our customers and suppliers to implement the capabilities of the TR-3,” Chief Executive Officer Jim Taiclet said in the release.
HOW IS PROFIT GOING
The company's consolidated operating profit as of March 31, 2024 stood at $2 billion, beating analysts' average estimate of $1.91 billion. Earnings per share of $6.33 also beat the consensus of $5.78. However, net income fell to $1.55 billion, or $6.39 per share, from $1.69 billion, or $6.61 per share, a year earlier, due to higher costs arising from labor and supply chain challenges.
THE ORDER PORTFOLIO
At the end of the first quarter, the order backlog amounted to $159.4 billion.
THE WORDS OF THE CEO
“These first quarter results strengthen our confidence in our ability to achieve the full-year financial expectations we set in January,” Lockheed Martin's CEO said in a statement.
GUIDANCE CONFIRMED
At the beginning of the year, Lockheed Martin had provided subdued guidance on the profit side.
The company said it expects net revenue of $68.5 billion to $70 billion this year, up from $67.6 billion in 2023 and above analysts' average expectations of $68.66 billion. dollars. And the defense giant confirmed the estimates provided at the beginning of the year, reiterating a profit of between 25.65 and 26.35 dollars per share.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/economia/perche-i-conti-di-lockheed-martin-schizzano/ on Wed, 24 Apr 2024 06:07:05 +0000.