Lockheed Martin Slips on Revenue Miss, Results ‘Underwhelming’ Says Analyst

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Shares of Lockheed Martin (NYSE:LMT) are down over 2% today after the company reported revenue below analyst consensus.

LMT reported Q2 net sales of $15.45 billion, down 9.3% YoY and missing the consensus estimates of $16.03 billion. The company reported an adjusted EPS of $6.32 in the quarter, while the backlog stood at $134.64 billion, down 5% YoY.

Aeronautics net sales hit $5.86 billion in the quarter, down 12% YoY and below the expected $6.54 billion. Space net sales came in at $2.83 billion, down 11% YoY, topping the consensus projection of $2.77 billion.

For the full fiscal year, LMT expects EPS of around $21.55, down from the previous forecast of $26.70 per share and below the estimates of $24.64 per share. The company expects FY net sales of $65.25 billion, down from $66 billion, and slightly below the analyst estimate of $65.98 billion.

LMT expects deliveries to stay in the range of 147 to 153 aircraft per year in 2023 and 2024, before rising to the planned delivery target of 156 aircraft in 2025.

“Although revenue in the period was affected by supply chain impacts and the timing of customer contract negotiations, our cost management initiatives resulted in margin expansion,” LMT said in a press release.

Cowen analyst Cai von Rumohr commented:

“Ex non-cash financial items, Q2 EPS was mostly in line although Q2 sales & FCF were a bit light. But guide for full year ops and FCF were essentially unchanged. However, moderated 2023-24 F-35 delivery expectations a modest disappointment. Investors may be neutral/disappointed given LMT’s prior record of consistent beats.”

Vital Knowledge analysts saw “underwhelming” results given the revenue miss.