NYSE$LMT

Lockheed Martin Corporation · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Lockheed Martin's Q3 2024 financial performance reflected a slight revenue increase and strong free cash flow generation.

Lockheed Martin reported Q3 2024 net sales of $17.1 billion, a 1% increase year-over-year, and net earnings of $1.6 billion, or $6.80 per share. The company generated $2.1 billion in free cash flow and increased its share repurchase authorization by $3.0 billion.

  • Net sales reached $17.1 billion, a 1% increase compared to the previous year.
  • Net earnings totaled $1.6 billion, resulting in $6.80 per share.
  • Free cash flow amounted to $2.1 billion.
  • Share repurchase authorization increased by $3.0 billion, reaching a total of $10.3 billion.

Headline financials

Total Revenue

$17.1B

Previous: $16.9B+1.3%
EPS (adj)

$6.84

Previous: $6.77+1.0%
Effective Income Tax Rate

15.4%

No prior period
Total Backlog

$176B

No prior period
Capital Expenditures

-$355M

No prior period
Net Income

$1.62B

Previous: $1.68B-3.6%
Operating Income

$2.14B

Previous: $2.04B+4.8%
Gross Profit

$2.12B

Previous: $2.05B+3.4%
Stock-Based Comp

$75M

Previous: $75M+0.0%

Revenue & EPS history

Lockheed Martin · Revenue · Quarterly

$17.1B

Q3 2024+1.3%vs Q3 2023
Beat estimate in 8 of 14 quarters(57%)
ActualEstimate

Revenue by segment

Lockheed Martin · $16.9B total across 4 segments · Q3 2023

  • Aeronautics
    $6.72B-5.2%
  • Rotary and Mission Systems
    $4.12B+9.0%
  • Space
    $3.1B+7.6%
  • Missiles and Fire Control
    $2.94B+3.8%

Forward guidance

Lockheed Martin increased its 2024 financial outlook.

Tailwinds

  • Net sales are expected to be approximately $71.25 billion.
  • Business segment operating profit is projected to be around $7.475 billion.
  • Total FAS/CAS pension adjustment is anticipated to be approximately $1.685 billion.
  • Diluted earnings per share are forecasted to be approximately $26.65.
  • Free cash flow is estimated to be around $6.2 billion.

Headwinds

  • The company's current 2024 financial outlook is premised on receiving contractual authorization and funding on the F-35 Lots 18-19 production contract in the fourth quarter of 2024.
  • Capital expenditures are expected to be approximately $1.75 billion.
  • Outlook does not incorporate adjustments for potential acquisitions, divestitures, ventures, or financing transactions until consummated.
  • The company's reliance on contracts with the U.S. Government, which are dependent on U.S. Government funding and can be terminated for convenience, and the company's ability to negotiate favorable contract terms
  • Risks related to the development, production, sustainment, performance, schedule, cost and requirements of complex and technologically advanced programs, including the F-35 program

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 2024

Historical avgQ3 2024

-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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