NYSE$LMT

Lockheed Martin Corporation · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Lockheed Martin reported increased net sales and earnings in Q4 2020, driven by strong performance across all business segments and strategic actions.

Lockheed Martin reported Q4 2020 net sales of $17.0 billion, up from $15.9 billion in Q4 2019, and net earnings from continuing operations of $1.8 billion, or $6.38 per share, compared to $1.5 billion, or $5.29 per share, in Q4 2019. The company also announced an agreement to acquire Aerojet Rocketdyne.

  • Net sales reached $17.0 billion, compared to $15.9 billion in the same quarter of the previous year.
  • Net earnings from continuing operations were $1.8 billion, or $6.38 per share, up from $1.5 billion, or $5.29 per share, in the prior year.
  • Cash from operations amounted to $1.8 billion, compared to $1.5 billion in the fourth quarter of 2019.
  • An agreement to acquire Aerojet Rocketdyne was announced.

Headline financials

Total Revenue

$17B

Previous: $15.9B+7.3%
EPS (adj)

$6.38

Previous: $5.29+20.6%
Free Cash Flow

$1.81B

No prior period
Net Income

$1.79B

Previous: $1.5B+19.6%
Operating Income

$2.29B

Previous: $2.15B+6.5%
Gross Profit

$2.21B

Previous: $2.12B+4.3%
Cash & Equivalents

$3.16B

Previous: $1.51B+108.7%
Total Assets

$50.7B

Previous: $47.5B+6.7%
Stock-Based Comp

$39M

Previous: $31M+25.8%

Revenue & EPS history

Lockheed Martin · Revenue · Quarterly

$17B

Q4 2020+7.3%vs Q4 2019
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Revenue by segment

Lockheed Martin · $17B total across 4 segments · Q4 2020

  • Aeronautics
    $6.71B+5.2%
  • Rotary and Mission Systems
    $4.21B+8.3%
  • Space
    $3.24B+14.1%
  • Missiles and Fire Control
    $2.87B+3.5%

Forward guidance

Lockheed Martin provided its 2021 financial outlook, which reflects the anticipated impacts from the COVID-19 pandemic and the UK Ministry of Defense’s intent to re-nationalize the Atomic Weapons Establishment program (AWE program) on June 30, 2021. The outlook does not incorporate the pending acquisition of Aerojet Rocketdyne Holdings, Inc.

Tailwinds

  • Net sales are projected to be between $67.1 billion and $68.5 billion.
  • Business segment operating profit is expected to range from $7.355 billion to $7.495 billion.
  • Diluted earnings per share are forecasted to be between $26.00 and $26.30.
  • Cash from operations is anticipated to be at least $8.3 billion.
  • The outlook includes a net FAS/CAS pension adjustment of approximately $2.330 billion.

Headwinds

  • The 2021 financial outlook reflects the anticipated impacts from the coronavirus disease 2019 (COVID-19) global pandemic based on the corporation’s understanding at the time of this news release.
  • The ultimate impacts of COVID-19 on the corporation’s financial outlook for 2021 and beyond remains uncertain and there can be no assurance that the corporation’s underlying assumptions are correct.
  • The 2021 financial outlook reflects the UK Ministry of Defense’s intent to re-nationalize the Atomic Weapons Establishment program (AWE program) on June 30, 2021.
  • The 2021 financial outlook does not incorporate the pending acquisition of Aerojet Rocketdyne Holdings, Inc. announced on Dec. 20, 2020.
  • The corporation’s 2021 financial outlook for cash from operations is net of $1.0 billion in expected discretionary contributions to its qualified defined benefit pension plans.

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 Q4 2020

Historical avgQ4 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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