NYSE$LMT

Lockheed Martin Corporation · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Lockheed Martin's Q2 2020 results were reported, showing increased net sales and earnings compared to the previous year, along with an increased 2020 outlook.

Lockheed Martin reported Q2 2020 net sales of $16.2 billion, up from $14.4 billion in Q2 2019. Net earnings were $1.6 billion, or $5.79 per share, compared to $1.4 billion, or $5.00 per share in the prior year. The company's cash from operations increased to $2.2 billion, and they achieved a record backlog of $150.3 billion. The company also increased its 2020 outlook for all financial metrics.

  • Net sales reached $16.2 billion.
  • Net earnings were $1.6 billion, or $5.79 per share.
  • Cash from operations totaled $2.2 billion.
  • Record backlog of $150.3 billion was achieved.

Headline financials

Total Revenue

$16.2B

Previous: $14.4B+12.4%
EPS (adj)

$5.79

Previous: $4.95+17.0%
Free Cash Flow

$1.63B

Previous: $1.42B+14.5%
Net Income

$1.63B

Previous: $1.42B+14.5%
Operating Income

$2.09B

Previous: $2.01B+3.9%
Gross Profit

$2.21B

Previous: $1.99B+11.0%
Cash & Equivalents

$2.86B

Previous: $1.17B+144.6%
Total Assets

$49.6B

Previous: $47.8B+3.7%
Stock-Based Comp

$73M

Previous: $67M+9.0%

Revenue & EPS history

Lockheed Martin · Revenue · Quarterly

$16.2B

Q2 2020+12.4%vs Q2 2019
Beat estimate in 12 of 16 quarters(75%)
ActualEstimate

Revenue by segment

Lockheed Martin · $16.2B total across 4 segments · Q2 2020

  • Aeronautics
    $6.5B
  • Rotary and Mission Systems
    $4.04B
  • Space
    $2.88B
  • Missiles and Fire Control
    $2.8B

Forward guidance

Lockheed Martin updated its 2020 guidance for net sales, segment operating profit, earnings per share and cash from operations to reflect the recent performance across all four business areas. However, the ultimate impact of COVID-19 on the corporation’s financial outlook in 2020 and future periods remains uncertain.

Tailwinds

  • Net sales between $63,500 million and $65,000 million.
  • Business segment operating profit between $6,900 million and $7,050 million.
  • Net FAS/CAS pension adjustment of approximately $2,090 million.
  • Diluted earnings per share between $23.75 and $24.05.
  • Cash from operations greater or equal to $8,000 million.

Headwinds

  • The ultimate impacts of COVID-19 on the corporation’s financial outlook for 2020 and beyond remains uncertain.
  • Production facilities continue to operate, and it does not experience significant work stoppages or closures.
  • The company is able to mitigate any supply chain disruptions and these do not worsen.
  • The company is able to recover its costs under U.S. Government contracts.
  • Government funding priorities do not change.

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 Q2 2020

Historical avgQ2 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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