NYSE$LMT

Lockheed Martin Corporation · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Lockheed Martin's Q2 2021 financial performance was reported, showing increased net sales and earnings per share compared to the same period last year, but also included a loss related to performance issues on a classified program within the Aeronautics segment.

Lockheed Martin reported Q2 2021 net sales of $17.0 billion, up from $16.2 billion in Q2 2020. Net earnings were $1.8 billion, or $6.52 per share, compared to $1.6 billion, or $5.79 per share, in the prior year. The results include a $225 million loss related to a classified program in Aeronautics. The company increased its 2021 financial outlook for earnings per share.

  • Net sales reached $17.0 billion, an increase from $16.2 billion in the second quarter of 2020.
  • Net earnings were $1.8 billion, or $6.52 per share, compared to $1.6 billion, or $5.79 per share, in the second quarter of 2020.
  • Cash from operations totaled $1.3 billion, a decrease from $2.2 billion in the second quarter of 2020.
  • The company increased its 2021 financial outlook for earnings per share.

Headline financials

Total Revenue

$17B

Previous: $16.2B+5.0%
EPS (adj)

$6.52

Previous: $5.79+12.6%
Free Cash Flow

$1.82B

Previous: $1.63B+11.6%
Net Income

$1.82B

Previous: $1.63B+11.6%
Operating Income

$2.19B

Previous: $2.09B+5.1%
Gross Profit

$2.15B

Previous: $2.21B-2.8%
Cash & Equivalents

$2.75B

Previous: $2.86B-3.9%
Total Assets

$52.1B

Previous: $49.6B+5.0%
Stock-Based Comp

$80M

Previous: $73M+9.6%

Revenue & EPS history

Lockheed Martin · Revenue · Quarterly

$17B

Q2 2021+5%vs Q2 2020
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Lockheed Martin · $17B total across 4 segments · Q2 2021

  • Aeronautics
    $6.67B+2.5%
  • Rotary and Mission Systems
    $4.24B+5.0%
  • Space
    $3.18B+10.4%
  • Missiles and Fire Control
    $2.94B+5.1%

Forward guidance

Lockheed Martin provided its current financial outlook for 2021, reflecting anticipated impacts from the COVID-19 pandemic and the UK Ministry of Defence’s renationalization of the Atomic Weapons Establishment program. The outlook does not incorporate the pending acquisition of Aerojet Rocketdyne Holdings, Inc.

Tailwinds

  • Net sales are projected to be between $67.3 billion and $68.7 billion.
  • Business segment operating profit is expected to be between $7.38 billion and $7.52 billion.
  • The net FAS/CAS pension adjustment is estimated to be approximately $2.33 billion.
  • Diluted earnings per share are projected to be between $26.70 and $27.00.
  • Cash from operations is expected to be at least $8.9 billion.

Headwinds

  • The ultimate impacts of COVID-19 on the company’s financial outlook for 2021 and beyond remains uncertain.
  • The 2021 financial outlook reflects the UK Ministry of Defence’s renationalization of the Atomic Weapons Establishment program on June 30, 2021.
  • The 2021 financial outlook reflects the impact of the unrealized and realized gains from investments held by the Lockheed Martin Ventures Fund year to date, but does not include any future gains or losses related to market volatility and changes in valuations of the company's investment holdings.
  • The 2021 financial outlook does not incorporate the pending acquisition of Aerojet Rocketdyne Holdings, Inc. previously announced on Dec. 20, 2020.
  • Actual results may differ materially from those projected due to various factors.

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 2021

Historical avgQ2 2021

-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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