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Lockheed Martin Corporation (LMT), headquartered in Bethesda, Maryland, boasts a market cap of $139.7 billion and is renowned for designing and manufacturing fighter jets and missiles, including the F-16 Falcon, F-22 Raptor, and F-35 Lightning. The defense giant is set to release its Q3 2024 earnings on Tuesday, October 15.
Ahead of the event, analysts expect Lockheed Martin to report a profit of $6.40 per share, down 5.5% from $6.77 per share reported in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in each of the previous four quarterly reports.
Its adjusted earnings for the last reported quarter rose 5.6% year over year to $7.11 per share, it beat the consensus estimates by 10.2%, thanks to solid sales growth and operating profit improvement from the second quarter of 2023.
For fiscal 2024, analysts expect Lockheed Martin to report an EPS of $26.65, down 4.2% from $27.82 in fiscal 2023. However, fiscal 2025 EPS is projected to grow 8.3% annually to $28.85.
LMT stock is up 29% on a YTD basis, outpacing the S&P 500 Index’s ($SPX) 20.8% returns and the S&P 500 Industrial Sector SPDR’s (XLI) 18.8% gains during the same time frame.
Escalating geopolitical tensions in recent years have driven a surge in global defense spending, boosting Lockheed Martin’s revenue streams and market performance. However, LMT shares were down over 1% after a Bloomberg report suggested that some of Ukraine’s allies are exploring potential cease-fire negotiations with Russia, putting pressure on defense stocks.
Moreover, shares of LMT surged 5.6% on Jul. 23 after reporting its Q2 earnings results, as it topped earnings and revenue expectations. The company revised its full-year outlook, projecting EPS in the range of $26.10 to $26.60, with expected revenue between $70.5 billion and $71.5 billion.
The consensus opinion on Lockheed Martin stock is moderately bullish, with a “Moderate Buy” rating overall. That’s based on 21 analysts covering the stock, with 11 advising a “Strong Buy” rating, one suggesting a “Moderate Buy,” eight giving it a “Hold” rating, and the remaining one having a “Strong Sell” rating. The consensus is more bullish than a month ago, with 10 “Strong Buys.”
While LMT currently trades above its mean price target of $554.81, the Street-high price target of $704 indicates a potential upswing of 20.4% from the prevailing price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
