NYSE$LMT

Lockheed Martin Corporation · Q4 2023 earnings

Q4 2023 earnings · · Investor relations

Briefing

Lockheed Martin's Q4 2023 financial results were reported, showing a slight decrease in net sales compared to the same period last year, but solid free cash flow generation.

Lockheed Martin reported Q4 2023 net sales of $18.9 billion, a slight decrease from $19.0 billion in Q4 2022. Net earnings were $1.9 billion, or $7.58 per share, compared to $1.9 billion, or $7.40 per share, in the prior year. Free cash flow increased to $1.7 billion from $1.2 billion. The company's backlog reached a record $160.6 billion.

  • Net sales reached $18.9 billion.
  • Net earnings were $1.9 billion, or $7.58 per share.
  • Free cash flow was $1.7 billion.
  • Backlog reached a record $160.6 billion.

Headline financials

Total Revenue

$18.9B

Previous: $19B-0.6%
EPS (adj)

$7.90

Previous: $7.79+1.4%
Capital Expenditures

-$704M

No prior period
Net Income

$1.87B

Previous: $1.91B-2.4%
Operating Income

$2.29B

Previous: $2.29B+0.0%
Gross Profit

$2.3B

Previous: $2.3B-0.3%
Stock-Based Comp

$44M

Previous: $43M+2.3%

Revenue & EPS history

Lockheed Martin · Revenue · Quarterly

$18.9B

Q4 2023-0.6%vs Q4 2022
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 provided its 2024 financial outlook, which includes net sales between $68.5 billion and $70.0 billion and diluted earnings per share between $25.65 and $26.35.

Tailwinds

  • Net sales between $68.5 billion and $70.0 billion
  • Business segment operating profit between $7,175 million and $7,375 million
  • Total FAS/CAS pension adjustment of ~$1,685 million
  • Diluted earnings per share between $25.65 and $26.35
  • Free cash flow between $6,000 million and $6,300 million

Headwinds

  • The company’s current 2024 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 early-stage company investments.
  • The company’s financial outlook for 2024 assumes that fiscal year 2024 appropriations bills are adopted in a timely manner, the company’s programs remain funded and that the U.S. Government does not shutdown or continue to operate under a continuing resolution for the remainder of 2024.
  • The outlook includes known impacts from inflationary pressures and labor and supply chain challenges at the time of this news release and experienced to date.
  • Capital expenditures ~$1,750 million
  • Total FAS/CAS pension adjustment includes total expected U.S. Government cost accounting standards (CAS) pension cost of approximately $1.7 billion.

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 2023

Historical avgQ4 2023

-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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