NYSE$LMT

Lockheed Martin Corporation · Q3 2020 earnings

Q3 2020 earnings · · Investor relations

Briefing

Reported strong results across key financial metrics, driven by dedicated workforce and resilient supply chain.

Lockheed Martin reported Q3 2020 net sales of $16.5 billion, compared to $15.2 billion in Q3 2019. Net earnings from continuing operations were $1.8 billion, or $6.25 per share, compared to $1.6 billion, or $5.66 per share, in Q3 2019. Cash from operations was $1.9 billion, compared to $2.5 billion in Q3 2019. The company achieved a record backlog of $150.4 billion.

  • Net sales reached $16.5 billion.
  • Net earnings from continuing operations were $1.8 billion, or $6.25 per share.
  • Cash from operations generated $1.9 billion.
  • Record backlog achieved at $150.4 billion.

Headline financials

Total Revenue

$16.5B

Previous: $15.2B+8.7%
EPS (adj)

$6.25

Previous: $5.66+10.4%
Total Backlog

$150B

No prior period
Free Cash Flow

$1.7B

Previous: $1.61B+5.6%
Net Income

$1.7B

Previous: $1.61B+5.6%
Operating Income

$2.15B

Previous: $2.11B+2.0%
Gross Profit

$2.14B

Previous: $2.06B+3.5%
Cash & Equivalents

$3.59B

Previous: $2.54B+41.2%
Total Assets

$50.8B

Previous: $49.3B+3.0%
Stock-Based Comp

$67M

Previous: $54M+24.1%

Revenue & EPS history

Lockheed Martin · Revenue · Quarterly

$16.5B

Q3 2020+8.7%vs Q3 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Lockheed Martin · $16.5B total across 4 segments · Q3 2020

  • Aeronautics
    $6.68B
  • Rotary and Mission Systems
    $4B
  • Missiles and Fire Control
    $2.97B
  • Space
    $2.85B

Forward guidance

The corporation expects its 2021 net sales to increase to greater than or equal to $67 billion. Total business segment operating margin in 2021 is expected to be in the 10.9 percent to 11.1 percent range and cash from operations is expected to be greater than or equal to $8.1 billion, net of $1.0 billion of planned pension contributions.

Tailwinds

  • 2021 net sales are expected to increase to greater than or equal to $67 billion.
  • Total business segment operating margin in 2021 is expected to be in the 10.9 percent to 11.1 percent range.
  • Cash from operations is expected to be greater than or equal to $8.1 billion, net of $1.0 billion of planned pension contributions.
  • Preliminary outlook for 2021 assumes continued support and funding of programs.
  • Preliminary outlook assumes a statutory tax rate of 21%.

Headwinds

  • The preliminary outlook for 2021 assumes that there will not be significant reductions in customer budgets.
  • The preliminary outlook for 2021 assumes that there will not be changes in funding priorities.
  • The preliminary outlook for 2021 assumes that the U.S. Government will not continue to operate under a continuing resolution for an extended period in which new contract and program starts are restricted.
  • Changes in circumstances may require the corporation to revise its assumptions.
  • The final assumptions and actual investment return for 2020 may differ materially from those discussed above.

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 Q3 2020

Historical avgQ3 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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