NYSE$LMT

Lockheed Martin Corporation · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Lockheed Martin's Q4 2022 financial results were reported, demonstrating the company's resilience and commitment to meeting obligations in challenging environments.

Lockheed Martin reported Q4 2022 net sales of $19.0 billion, compared to $17.7 billion in Q4 2021. Net earnings were $1.9 billion, or $7.40 per share, compared to $2.0 billion, or $7.47 per share, in Q4 2021. The company's backlog increased 11% to $150 billion compared to Q4 2021.

  • Net sales reached $19.0 billion, up from $17.7 billion in the same quarter last year.
  • Net earnings were $1.9 billion, resulting in $7.40 earnings per share.
  • Cash from operations totaled $1.9 billion, with a free cash flow of $1.2 billion.
  • The company returned $5.0 billion to shareholders through share repurchases and dividends.

Headline financials

Total Revenue

$19B

Previous: $17.7B+7.1%
EPS (adj)

$7.79

Previous: $7.47+4.3%
Total Backlog

$150B

No prior period
Free Cash Flow

$1.24B

No prior period
Net Income

$1.91B

Previous: $2B-4.4%
Operating Income

$2.29B

Previous: $2.46B-6.6%
Gross Profit

$2.3B

Previous: $2.42B-5.0%
Cash & Equivalents

$2.55B

Previous: $3.6B-29.3%
Total Assets

$52.9B

Previous: $50.9B+3.9%
Stock-Based Comp

$43M

Previous: $38M+13.2%

Revenue & EPS history

Lockheed Martin · Revenue · Quarterly

$19B

Q4 2022+7.1%vs Q4 2021
Beat estimate in 8 of 14 quarters(57%)
ActualEstimate

Revenue by segment

Lockheed Martin · $19B total across 4 segments · Q4 2022

  • Aeronautics
    $7.64B+7.1%
  • Rotary and Mission Systems
    $4.8B+7.7%
  • Missiles and Fire Control
    $3.29B+2.1%
  • Space
    $3.27B+11.7%

Forward guidance

Lockheed Martin provided its 2023 financial outlook, expecting net sales between $65.0 and $66.0 billion and diluted earnings per share between $26.60 and $26.90.

Tailwinds

  • Net sales ~$65,000 - $66,000 million
  • Business segment operating profit ~$7,010 - $7,110 million
  • Effect of Jan. 1, 2023 reclassification of intangible amortization expense ~$245 million
  • Total FAS/CAS pension adjustment ~$2,100 million
  • Cash from operations ≥$8,150 million

Headwinds

  • Capital expenditures ~$(1,950) million
  • The company’s current 2023 financial outlook does not include any future gains or losses related to changes in valuations of the company's net assets and liabilities for deferred compensation plans or mark-to-market investments.
  • The outlook assumes continued accelerated payments to suppliers, with a focus on small and at-risk businesses.
  • In addition, the outlook reflects no significant reduction in customer budgets or changes in priorities, continued support and funding of the company’s programs, and a statutory tax rate of 21%.
  • It also includes known impacts to the company and broader defense supply chain from the COVID-19 pandemic based on the company’s understanding at the time of this news release and its experience to date.

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 2022

Historical avgQ4 2022

-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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