LMT financial results: Lockheed Martin increases profit due to upward revisions to fiscal year 24 earnings forecast

The stock price of Lockheed Martin LMT +4.31% ▲ rose as the company revised its earnings forecast for fiscal year 24 upward.

Lockheed Martin, a major player in the aerospace and defense industry, expects sales for this fiscal year to range from 70.5 billion dollars to 71.5 billion dollars from the previous range of 68.5 billion dollars to 70 billion dollars. This positive adjustment follows a strong second quarter.

The company predicts profit for fiscal year 24 in the range of 26.10 dollars to 26.60 dollars compared to an advance forecast of 25.65 dollars to 26.35 dollars per share. For reference, analysts expected sales of 69.7 billion dollars and earnings per share of 26.33 dollars. This positive adjustment follows a strong second quarter.

Lockheed Martin announced impressive figures in the second quarter, and adjusted earnings per share recorded 6.85 dollars, which exceeded analysts' expectations of 6.46 dollars. Total sales were 18.12 billion dollars, up 8.5% from the same period last year, which exceeded the forecast of 17.04 billion dollars. A major factor in this increase in sales was the resumption of deliveries of the F-35, which had been suspended for several months due to delays in critical software upgrades.

Lockheed Martin CEO Jim Tykley emphasized the importance of the F-35 program, which accounts for approximately 30% of the company's revenue. “The F-35 remains a top priority,” Teicle said, adding that deliveries of the upgraded TR-3 version have begun. It is planned to deliver 75 to 110 F-35s in 2024.

The aviation sector, which includes the F-35 and F-16 programs, is a major revenue pillar, accounting for more than 40% of total sales. Sales for the second quarter were 7.3 billion dollars, up 6% from the same period last year. This increase is due to 0.3 billion 35 million dollars due to increased sales of the F-35 and 0.1 billion 5 million dollars due to increased production of the F-16.

Some analysts point out that the increase in sales was due to timing issues, and that this increase may not last long. Nevertheless, Lockheed Martin's strong outlook and strong second-quarter financial results show that the defense sector remains strong and adapts to new needs.

Analysts are still callous about LMT stocks, and consensus evaluations based on 1 “buy” and 6 “hold” cases are “pending.” Over the past year, LMT has risen more than 8%, and LMT's average target share price of $497 suggests a 2.5% increase from current levels. There is a high possibility that these analyst assessments will change after today's LMT second quarter results.