Earnings Preview: Lockheed Martin Corp.

Lockheed Martin Corporation (LMT) is expected to report Q3 earnings before market open Tuesday, Oct. 21, with a conference call scheduled for 11:00 am ET.

Guidance

Analysts are looking for EPS of $1.88 on revenue of $10.73B. The consensus range is $1.83 to $1.95 for EPS, and $10.52B to $11.01B for revenue, according to First Call.

Analyst Views

Lockheed Martin raised its FY08 EPS and revenue guidance when it reported its Q2 earnings. The company raised FY08 EPS view to $7.45 to $7.60 from $7.15 to $7.35. FY08 EPS consensus was $7.47 at the time, it has since been raised to $7.74. The company also raised its FY08 revenue guidance to $41.9B to $42.9B from $41.8M to $42.8M. The consensus estimate was also raised to $42.87B from $42.84B. Friedman Billings stated after the company's Q2 earnings report, it thinks Lockheed Martin's increased FY08 EPS guidance appears conservative due to strong program performance, cash flow generation and valuation. The firm increased its Q3, Q4, FY08 and FY09 EPS estimates, which are more weighted to the Q4 than prior forecasts, as the firm anticipates shares to be range-bound in the Q308 given the uncertainty related to the upcoming Presidential election along with a lighter-than-expected Q3. The firm maintained its Outperform rating for the company.

AmTech stated on October 14, it expects Lockheed Martin's Q3 EPS to beat the consensus estimate, and the firm thinks its valuation is very attractive. While AmTech believes that the election will continue to weigh on the company's shares, the firm recommends buying the stock.