Lockheed Martin posted first-quarter earnings on Tuesday.
Sameer Al-Doumy/AFP via Getty Images
Lockheed Martin posted first-quarter earnings on Tuesday.
Sameer Al-Doumy/AFP via Getty Images
Defense giant Lockheed Martin reported a solid first quarter Lockheed Martin stock, however, isn’t doing much on the good news. Investors, frankly, are used to strong results.
Lockheed Martin (ticker: LMT) earned $6.56 a share from $16.3 billion in sales over the first three months of the year. Analysts were looking for about $16.3 billion in sales and $6.30 in per share earnings.
In addition, Lockheed increased its full-year 2021 earnings guidance by about 40 cents a share, to $26.45 at the midpoint of the new range. That boost to full-year guidance is notably more than the first quarter’s 26-cent earnings “beat,” which means the improved 2021 outlook was driven by more than just a strong first quarter.
Still, the stock is down about 0.8% in premarket trading Tuesday. S&P 500 and Dow Jones Industrial Average futures, for comparison, are both down about 0.4%.
For the year, Lockheed stock is up about 10%, in line with gains of the broader market.
Investors are used to solid results from Lockheed. The company misses Wall Street estimates from time to time, but over the past 10 years the average “miss” has been by a measly 2%. Meanwhile, the average earnings “beat” is about 11%. That’s just what investors expect—reasonable beats and not a lot of bad news.
That’s good, such consistency means the stock doesn’t do much on earnings reports. The average post-earnings move, up or down, is about 2%, and the stock is just as likely to go up or down after reporting numbers.
“Lockheed Martin continues to deliver vital next generation technologies that will help keep our nation and its allies safe, and advance space exploration, while providing long-term value for the U.S. taxpayers and our shareholders,” said CEO James Taiclet in the company’s news release.
Sales grew in each of the company’s segments: jets, helicopters, missiles, and space.
Lockheed management hosts a conference call at 11 a.m. ET to discuss results. Analysts and investors will be eager to discuss the latest U.S. defense budget proposal, which implies a little growth compared with 2020 spending.
Write to Al Root at [email protected]
