NYSE$LMT

Lockheed Martin Corporation · Q1 2020 earnings

Q1 2020 earnings · · Investor relations

Briefing

Lockheed Martin's first quarter earnings increased, driven by strong sales and operational performance.

Lockheed Martin reported strong first-quarter results with net sales of $15.7 billion and net earnings of $1.7 billion, or $6.08 per share. The company's cash from operations was $2.3 billion, and it maintained a backlog of approximately $144 billion. The company updated its 2020 outlook for sales and maintained its outlook for operating profit, earnings per share, and cash from operations.

  • Net sales reached $15.7 billion, demonstrating a 9% increase compared to Q1 2019.
  • Net earnings amounted to $1.7 billion, resulting in earnings per share of $6.08.
  • Cash from operations totaled $2.3 billion, showcasing strong cash generation capabilities.
  • The company maintained a robust backlog of approximately $144 billion, indicating future revenue potential.

Headline financials

Total Revenue

$15.7B

Previous: $14.3B+9.2%
EPS (adj)

$6.08

Previous: $5.99+1.5%
Effective Income Tax Rate

15.4%

No prior period
Total Backlog

$144B

No prior period
Free Cash Flow

$2.31B

No prior period
Net Income

$1.72B

Previous: $1.7B+0.8%
Operating Income

$2.12B

Previous: $2.28B-7.1%
Gross Profit

$2.09B

Previous: $2.19B-4.4%
Cash & Equivalents

$1.99B

Previous: $991M+100.6%
Total Assets

$49.2B

Previous: $47.7B+3.3%
Stock-Based Comp

$42M

Previous: $37M+13.5%

Revenue & EPS history

Lockheed Martin · Revenue · Quarterly

$15.7B

Q1 2020+9.2%vs Q1 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Lockheed Martin · $15.7B total across 4 segments · Q1 2020

  • Aeronautics
    $6.37B
  • Rotary and Mission Systems
    $3.75B
  • Space
    $2.92B
  • Missiles and Fire Control
    $2.62B

Forward guidance

Lockheed Martin updated its 2020 guidance for net sales to reflect the currently expected impacts related to COVID-19. The ultimate impact of COVID-19 on the corporation’s financial outlook for 2020 remains uncertain.

Tailwinds

  • Production facilities continue to operate.
  • No significant work stoppages or closures are expected.
  • The company is able to mitigate any supply chain disruptions and these do not worsen.
  • The company is able to recover its costs under contracts.
  • Government funding priorities do not change.

Headwinds

  • The ultimate impact of COVID-19 on the corporation’s financial outlook for 2020 remains uncertain.
  • The corporation’s 2020 outlook does not include any non-cash impairment charge related to its equity method investment in AMMROC.
  • Potential impacts to the corporation’s programs, including the F-35 program, resulting from U.S. Government actions related to Turkey.
  • Differences between these assumed values and actual values will affect the corporation’s plan funded status and stockholders’ equity as measured at year-end 2020.
  • Future changes in expectations for sales, earnings and cash flows related to intangible assets and goodwill below its current projections could cause these assets to be impaired.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2020

Historical avgQ1 2020

-0.3%

Avg return

Earnings day

-1.1%

Avg return

5 days after

+0.1%

Avg return

30 days after

58%

42 / 73 earnings

Positive

+10.7%

Q3 2022

Best reaction

-12.1%

Q3 2021

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026+0.5%-7.8%-4.0%
Q4 2025+4.3%+5.2%+10.2%
Q3 2025-2.4%-4.1%-7.4%
Q2 2025-10.9%-8.5%-2.9%
Q1 2025+0.8%+4.2%+2.6%
Q4 2024-9.2%-8.1%-11.4%
Q3 2024-7.1%-8.5%-11.8%
Q2 2024+0.7%-0.2%+1.9%
Q1 2024-0.5%-0.0%+1.2%
Q4 2023-5.9%-6.3%-6.5%
Q3 2023+1.3%+0.9%+1.2%
Q2 2023-3.9%-3.2%-5.0%
Q1 2023+1.1%-1.4%-6.9%
Q4 2022+2.9%+4.2%+8.6%
Q3 2022+10.7%+14.4%+19.0%
Q2 2022+2.1%+1.9%+13.4%
Q1 2022-2.9%-4.6%-8.9%
Q4 2021+4.8%+5.3%+6.0%
Q3 2021-12.1%-11.7%-8.7%
Q2 2021-1.6%-2.4%-5.8%
Q1 2021-1.1%-3.7%-0.9%
Q4 2020-3.2%-6.3%-0.5%
Q3 2020-4.3%-2.4%-1.9%
Q2 2020+7.8%+5.7%+6.1%
Q1 2020-0.7%-0.4%-3.8%
Q4 2019+0.3%-1.0%-11.1%
Q3 2019-0.3%-0.9%+4.3%
Q2 2019+3.2%+3.3%+7.9%
Q1 2019+4.7%+4.1%+7.9%
Q4 2018+1.3%+0.9%+7.5%
Q3 2018-4.8%-6.6%-9.9%
Q2 2018+1.9%+1.8%+0.5%
Q1 2018-8.1%-10.2%-9.0%
Q4 2017+1.6%+2.2%+2.2%
Q3 2017-2.6%-4.0%-1.8%
Q2 2017+0.8%+0.2%+4.5%
Q1 2017-2.1%-2.4%+2.1%
Q4 2016-2.5%-1.5%+2.9%
Q3 2016+7.7%+6.8%+13.9%
Q2 2016+0.1%+0.4%-0.3%
Q1 2016+3.2%
Q4 2015-1.5%
Q3 2015+0.4%
Q2 2015+1.0%
Q1 2015+0.4%
Q4 2014-3.3%
Q3 2014+0.3%
Q2 2014+3.1%
Q1 2014+0.3%
Q4 2013-5.7%
Q3 2013+5.3%
Q2 2013+3.0%
Q1 2013+1.9%
Q4 2012-3.8%
Q3 2012+1.7%
Q2 2012+0.9%
Q1 2012+0.4%
Q4 2011+2.2%
Q3 2011-1.2%
Q2 2011-6.8%
Q1 2011-0.1%
Q4 2010-1.3%
Q3 2010+2.8%
Q2 2010-0.1%
Q1 2009+2.0%
Q1 2010+0.7%
Q4 2009+0.3%
Q4 2007+0.3%
Q3 2008-0.2%
Q3 2009-0.2%
Q2 2009+0.3%
Q2 2008+0.3%
Q4 2008+0.3%

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