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Lockheed Martin Corporation (LMT) is scheduled to report its Q2 2012 results on July 24, 2012, before the market opens. The street expects EPS and revenue of $1.91 and $11.29B, respectively.

In this article I will recap the historical results of the company, its latest EPS estimates vs. surprises, the latest news from LMT and the news from its closest competitors.

Lockheed Martin Corporation Revenue and Net Income History

Recent EPS Actuals vs. Estimates

The company has met or beaten analysts' estimates in the last four quarters. In the last quarter it reported $2.02 EPS, beating analyst estimates of $1.70.

Lockheed Martin Corporation EPS Historical Results vs Estimates

The consensus EPS estimate is $1.91 based on 22 analysts' estimates, down from $2.14 a year ago. Revenue estimates are $11.29B, down from $11.55B a year ago. The median target price by analysts for the stock is $86.00.

Average recommendation: Hold

Source: Marketwatch

Analyst Upgrades and Downgrades

  • On April 11, 2012, Deutsche Bank reiterated Hold rating for the company.
  • On March 5, 2012, RBC Capital Mkts upgraded the company from Underperform to Outperform.

Latest News

  • On July 11, 2012, Ocean Power Technologies, Inc. and Lockheed Martin Corp announced that they have entered into a teaming agreement with the goal of developing a 19 megawatt wave-energy project in Victoria, Australia.
  • On July 10, 2012, Reuters reported that Lockheed Martin Corp said it was reducing its workforce by 740 employees at its mission systems and sensors business to save costs amid U.S. defense budget cuts.
  • On July 10, 2012, Lockheed Martin Corp announced that it has received a $23 million contract from the Royal Air Force of Oman (RAFO) to provide additional Sniper Advanced Targeting Pods (ATP) for their F-16 fleet.
  • On July 9, 2012, Lockheed Martin announced that it has awarded a $27 million, firm-fixed-price contract to produce components for 22 Vertical Launch anti-submarine (VLA) missiles from The U.S. Navy.
  • On July 3, 2012, Lockheed Martin Corp announced that it has been selected by the Defense Advanced Research Projects Agency (DARPA) to receive a Phase I Airborne Launch Assist Space Access (ALASA) program study contract valued at about $6.2 million.
  • On June 28, 2012, Lockheed Martin Corp announced that its board of directors has authorized a third quarter 2012 dividend of $1 per share. The dividend is payable on Sept.
  • On June 28, 2012, The U.S. Air Force announced that it has awarded Lockheed Martin a $241.6 million contract for Lot 10 production of the Joint Air-to-Surface Standoff Missile (JASSM) and Extended Range (ER) variant.
  • On June 26, 2012, Lockheed Martin Corp announced that it has received a $27.1 million contract from the U.S. Army for the first phase of a three year development program that will increase crew protection and update the Army's fleet of Multiple Launch Rocket System (MLRS) M270A1 mobile rocket launchers.
  • On June 24, 2012, Lockheed Martin Corp announced that at the request of the Federal Mediation and Conciliation Service, Lockheed Martin officials met June 20, 2012, through June 23, 2012, with representatives of the International Association of Machinists and Aerospace Workers, District 776, which represents about 3,600 striking Lockheed Martin employees in Fort Worth and at Edwards AFB, Calif., and NAS Patuxent River, Md. The Company and union negotiators have not disclosed terms of the tentative agreement.
  • On June 20, 2012, Lockheed Martin Corp announced that The Defense Information Systems Agency (DISA) has chosen Lockheed Martin to manage the transformation of the Department of Defense's global data network.
  • On June 16, 2012, Reuter reported that Lockheed Martin Corp has won a U.S contract worth $490 million to start buying parts, material and components for a seventh batch of 35 F-35 Joint Strike Fighter planes, the Pentagon announced on Friday.
  • On June 15, 2012, Reuters reported that Lockheed Martin Corp under intense pressure from the Pentagon to reduce labor and pension costs, said that it would hire more temporary workers to maintain production at its Fort Worth, Texas, plant, where a key union has been on strike for eight weeks, mainly over future pension benefits.
  • On June 7, 2012, Lockheed Martin Corp announced that it has signed a new strategic enterprise agreement with Arrow Electronics covering procurement of more than 22,000 electronic components used in advanced technology systems such as missiles, satellites, radar systems, tactical fighter aircraft and unmanned surveillance systems.
  • On June 5, 2012, Reuters reported that Lockheed Martin Corp has won a preliminary contract valued at up to $2.02 billion to build at least 42 interceptor missiles for the U.S. military's missile defense agency.
  • On May 30, 2012, Lockheed Martin Corp announced that it has been selected as a contractor authorized to compete for task orders on a Government-Wide Acquisition Contracting (GWAC) vehicle managed by the National Institutes of Health Information Technology Acquisition and Assessment Center (NITAAC).
  • On April 30, 2012, Lockheed Martin Corp announced that it was recently awarded a $254.7 million Department of Defense contract to continue supporting the Defense Civilian Personnel Data System (DCPDS).
  • On April 30, 2012, Lockheed Martin Corp announced that The U.S. Army awarded it $391 million in production orders for a new radar system that provides soldiers with enhanced 360-degree protection from rocket, mortar and artillery fire.
  • On April 26, 2012, Lockheed Martin Corporation announced that for fiscal 2012, it expects net sales to be in the range of $45.000-$46.000 billion, operating profit to be in the range of $3.900-$4.000 billion and diluted earnings per share (EPS) from continuing operations in the range of $7.70-$7.90. According to I/B/E/S Estimates, analysts are expecting the Company to report revenue of $45.622 billion and EPS of $7.87 for fiscal 2012.
  • On April 26, 2012, Lockheed Martin Corp announced that Chairman and CEO Bob Stevens, 60, informed the board of directors of his plans to retire as CEO after 25 years of service with the Company.
  • On April 26, 2012, Lockheed Martin Corp announced that its Board of Directors have authorized a second quarter 2012, dividend of $1 per share. The dividend is payable on June 22, 2012, to holders of record as of the close of business on June 1, 2012.
  • On April 24, 2012, Lockheed Martin Corp announced that it has received a $79.4 million contract from the U.S. Department of Defense to develop a new variant of the Guided Multiple Launch Rocket System (GMLRS) that incorporates a new warhead.
  • On April 17, 2012, Lockheed Martin Corp announced that it has been awarded the G3 Training and Readiness Support Service contract with a ceiling value of $89 million and a three year period of performance for the U.S. Army Intelligence and Security Command. it has been awarded the G3 Training and Readiness Support Service contract with a ceiling value of $89 million and a three year period of performance for the U.S. Army Intelligence and Security Command.
  • On April 14, 2012, Reuters reported that Lockheed Martin Corp on Friday won a $259 million contract adding two more F-35 fighter jets to a fifth batch of jets being purchased by the U.S. military, boosting the size of that order to 32 jets, the Pentagon and Lockheed officials said.
  • On April 6, 2012, Lockheed Martin Corp announced a $1.05 billion, five-year contract to provide more than 200 digital cockpits and integrated mission systems and sensors for the Navy MH-60R "Romeo" and MH-60S "Sierra" helicopters.
  • On April 3, 2012, The system that provides U.S. Theater Combatant Commanders and partner nations with U.S. missile event information will continue to be supported by Lockheed Martin Corp.
  • On March 27, 2012, BM&FBovespa (Bovespa) announced that, on April 4, 2012, the Brazilian Depositary Receipts (BDRs) Level I of Lockheed Martin Corp will start being traded on Bovespa's over-the-counter (OTC) market, quoted in BRL per unit and with standard trading lot of 100 BDRs, under the ticker LMTB11B.
  • On March 26, 2012, Lockheed Martin Corp announced that it received a $66 million follow-on contract from the Missile Defense Agency to continue development of Terminal High Altitude Area Defense (THAAD) Weapon System.
  • On March 12, 2012, Lockheed Martin Corp announced that it has received an indefinite delivery/indefinite quantity Sniper Advanced Targeting Pod (ATP) Post Production Support (PPS) contract from the U.S. Air Force.
  • On March 5, 2012, The Thai Meteorological Department announced that it will install a Lockheed Martin's WindTracer Doppler lidar system at Bangkok's Suvarnabhumi International Airport as part of its Integrated Windshear Alerting System.
  • On March 1, 2012, Lockheed Martin Corp and National Rural Telecommunication Cooperative announced a partnership to deliver Lockheed Martin's information technology and cyber security services to NRTC's member community.
  • On February 22, 2012, Lockheed Martin Corp announced that its penetrating radar capable of detecting objects that are buried, camouflaged or concealed under dense foliage was deployed to support U.S. Southern Command (SOUTHCOM).
  • On February 6, 2012, Lockheed Martin Corp announced that the U.S. Air Force awarded the Company a five-year competitive contract to provide technical support of the Distributed Mission Operations Center (DMOC) located at Kirtland Air Force Base, N.M. The indefinite delivery, indefinite quantity contract has a $94 million ceiling value.
  • On January 31, 2012, Lockheed Martin Corp announced that the U.S. Army Engineering and Support Center, Huntsville, awarded Lockheed Martin a $66 million contract to stand up the U.S. Army Medical Research Institute of Infectious Diseases Replacement Laboratory at Fort Detrick, Md.
  • On January 31, 2012, Lockheed Martin Corp and Raytheon Company announced that they are teaming to compete for a U.S. Navy contract that will upgrade the fleet's capability to electronically attack anti-ship missiles.
  • On January 30, 2012, Lockheed Martin Corp announced that it has received contracts totaling $921 million from the U.S. Army Aviation and Missile Command for hardware and services associated with the combat Patriot Advanced Capability-3 (PAC-3) Missile Segment program.
  • On January 30, 2012, SGS and Savi Technology, a wholly-owned subsidiary of Lockheed Martin Corp, announced an exclusive, multi-year, worldwide strategic alliance to develop, promote, market and deliver a first-of-its-kind service that will enable countries and organizations to track and monitor cargo and shipments in real-time.
  • On January 27, 2012, Lockheed Martin Corporation announced that its Board of Directors has authorized a first quarter 2012 dividend of $1 per share. The dividend is payable on March 23, 2012 to holders of record as of the close of business on March 1, 2012.
  • On January 26, 2012, HEADLINE CORRECTED TO READ - "Issues FY 2012 Guidance; Operating Profit Guidance Below Analysts' Estimates"... INSTEAD OF... "Issues FY 2012 Guidance; EPS Guidance Below Analysts' Estimates"... BODY CORRECTED TO READ - "EPS of $7.77"... INSTEAD OF... "EPS of $8.41". Lockheed Martin Corporation announced that for fiscal 2012, it expects net sales to be in the range of $45-$46 billion, operating profit to be in the range of $3.900-$4.000 billion and diluted earnings per share in the range of $7.70-$7.90. According to I/B/E/S Estimates, analysts were expecting the Company to report revenue of $46 billion, operating profit of $4.11 billion and EPS of $7.77 for fiscal 2012.

Competitors

The Boeing Company (BA), L-3 Communications Holdings (LLL), Northrop Grumman Corporation (NOC), and Raytheon (RTN) are considered major competitors for Lockheed Martin and the table below provides the key metrics for these companies and the industry.

Lockheed Martin Corporation key ratio comparison with direct competitors

The chart below compares the stock price changes as a percentage for the selected companies and S&P 500 index for the last one year period.

(click to enlarge)LMT Chart

LMT data by YCharts

Competitors' Latest Development

  • On July 18, 2012, L-3 Communications Holdings, Inc. announced today that it has successfully completed the previously announced spin-off of its subsidiary, Engility Holdings, Inc. L-3 shareholders of record as of July 16, 2012 (the record date) received one share of Engility common stock for every six shares of L-3 common stock held on the record date.
  • On July 16, 2012, Raytheon Co announced that it has received a $3.1 million contract to develop technology for Morphing Network Assets to Restrict Adversarial Reconnaissance (MORPHINATOR), a program that uses cyber maneuvering techniques to thwart potential attackers in high-threat environments.
  • On July 13, 2012, SES SA announced an agreement with Northrop Grumman Corp to supply satellite capacity and services for the NATO Alliance Ground Surveillance (AGS) system.
  • On July 12, 2012, Boeing announced an order by United Continental Holdings, Inc and its wholly owned subsidiary, United Air Lines, Inc., for 150 737 airplanes, including 100 of the new 737 MAX 9. United, the airline by traffic, is the latest carrier to choose the newest member of the 737 family, which eclipsed 10,000 orders overall.
  • On July 11, 2012, Northrop Grumman Corp announced that it has been awarded a series of follow-on contracts by the Japanese Maritime Self-Defense Force (JMSDF) to supply three additional AQS-24A airborne mine hunting systems.
  • On July 11, 2012, Dow Jones reported that The Boeing Company announced at the Farnborough International Airshow a commitment by Avolon to purchase 10 737 MAX 8s and five 737 MAX 9s, as well as 10 Next-Generation 737-800s.
  • On July 11, 2012, The Boeing Company and the Europe-based TUI Travel PLC announced that they have signed a five year agreement to provide 787 Dreamliner flight, maintenance and cabin safety training.
  • On July 10, 2012, L-3 Communications announced that its L-3 GCS subsidiary has been awarded a contract by the U.S. Special Operations Command (USSOCOM) to develop and manufacture Very Small Aperture Terminal (VSAT) satellite systems.
  • On July 10, 2012, Raytheon Co announced that it has been awarded a contract to produce four radar pods with ground moving target indication and synthetic aperture radar technology for the U.S. Air Force.
  • On July 9, 2012, Raytheon Co announced that it was awarded a $636 million development and sustainment contract to provide the Exoatmospheric Kill Vehicle to The Boeing Company, which is the prime contractor for the Ground-based Midcourse Defense program.
  • On July 9, 2012, Raytheon Co announced that it has has won an award valued at $4.7 million from the U.S. Army for Engineering and Manufacturing Development (EMD) of the Personal Electronics Computer and Display System in support of the Air Soldier System.
  • On July 9, 2012, The Boeing Company and Air Lease Corporation announced a firm order for 60 737 MAX 8 and 15 737 MAX 9 airplanes, with reconfirmation rights for 25 additional 737 MAXs.
  • On July 5, 2012, Northrop Grumman Corp announced that it has been selected to supply the Platform Management System (PMS) for the Royal Navy's fifth Astute-class submarine, Anson.
  • On July 5, 2012, Reuters reported that Virgin Australia Holdings Ltd. said it has ordered 23 The Boeing Company 737 MAX 8 aircraft in a deal worth USD2.19 billion at list prices.
  • On July 4, 2012, Northrop Grumman Corp announced that it has been selected to provide preliminary research and development on U.S. military health care applications to improve the way health care is delivered to military personnel.
  • On June 26, 2012, L-3 Communications Holdings, Inc. announced that its board of directors has approved the distribution to its shareholders of all the outstanding shares of its subsidiary, Engility Holdings, Inc., and set the distribution ratio, record date and distribution date for the spin-off.
  • On June 26, 2012, ICO Global Communications (Operations) Ltd. (ICO), a subsidiary of Pendrell Corporation, announced that it has withdrawn its petition for review to the California Supreme Court in connection with its litigation against The Boeing Company and certain of its subsidiaries.
  • On June 26, 2012, The Boeing Company announced an agreement to collaborate on the KC-390 aircraft program. Under this agreement, Boeing and Embraer will share some specific technical knowledge and evaluate markets where they may join their sales efforts for medium-lift military transport opportunities.
  • On June 25, 2012, Northrop Grumman Corp announced that the U.S. Navy has awarded Northrop Grumman, an early operational production contract to deliver Advanced Threat Warning (ATW) sensors, an integral component of the Department of Navy Large Aircraft Infrared Countermeasures (DoN LAIRCM) system.
  • On June 25, 2012, Northrop Grumman announced that The Danish Ministry of Defence announced that it has selected Northrop Grumman's LITENING G4 targeting system for its F-16 fighter aircraft.
  • On June 20, 2012, Northrop Grumman Corp announced that it has received an $87.8 million foreign military sales (FMS) contract to provide the APG-68(V)9 airborne fire control radar to Thailand, Iraq and Oman for use on F-16 fighter aircraft.
  • On June 20, 2012, Raytheon Co announced that it has been chosen by Los Angeles County to replace legacy emergency dispatch consoles with new ones that can easily be expanded for emerging public safety technologies such as Long Term Evolution, a high-speed, wireless broadband data network.
  • On June 20, 2012, Dow Jones reported that Boeing will collaborate on air traffic management (ATM) research with LOT Polish Airlines, Polish government agencies and academic institutions to make commercial aviation in Poland more efficient and to support airline profitability.
  • On June 19, 2012, Northrop Grumman Corp announced a three-year, $108 million contract to develop and implement cryptography upgrades as part of the intercontinental ballistic missile cryptography upgrade II engineering and manufacturing development program.
  • On June 13, 2012, Raytheon Co announced that it has received a $19 million contract to modify the Navy Multiband Terminal (NMT) to link it with the Air Force's Enhanced Polar Satellite .
  • On June 13, 2012, Raytheon Company announced that it has received a $79 million contract from the U.S. Navy for 47 more Navy Multiband Terminal systems. NMT is one of three Raytheon Advanced Extremely High Frequency (AEHF) terminals that are in production and have successfully interoperated with the AEHF satellite.
  • On June 11, 2012, Northrop Grumman Corp announced that it has been awarded a cybersecurity contract to develop, integrate and sustain cloud-based information repositories in an integrated product development team environment with the government.
  • On June 8, 2012, Northrop Grumman Corp announced that The Virginia Contracting Activity has awarded the Company a five year contract to support the Regional Joint Intelligence Training Facility (RJITF).
  • On June 8, 2012, Raytheon Co announced that the U.S. Navy awarded the Company a $338 million contract for the Tomahawk Block IV tactical cruise missile. The contract, which was announced by the Department of Defense on June 7, 2012 includes replenishment of weapons used during Operation ODYSSEY DAWN and procurement for the government's fiscal year 2012.
  • On June 7, 2012, Northrop Grumman Corp announced that it has signed a definitive agreement to acquire privately held M5 Network Security Pty Ltd, a Canberra, Australia based provider of cybersecurity and secure mobile communications products and services, and advanced analytics to Australian military and intelligence organizations.
  • On May 31, 2012, Raytheon Co announced that its Board of Directors has declared a quarterly cash dividend of $0.50 per outstanding share of common stock. The cash dividend is payable on Aug. 9, 2012, to shareholders of record as of the close of business on July 5, 2012.
  • On May 21, 2012, Northrop Grumman Corporation announced it has signed a $1.7 billion (EUR1.2 billion) contract for NATO's Alliance Ground Surveillance (AGS) system. Operating under NATO command, AGS is expected to be the major data source for NATO's system for Joint Intelligence, Surveillance and Reconnaissance (JISR).
  • On May 18, 2012, Raytheon Co announced that the U.S. Navy awarded the Company, a contract totaling $57.8 million to overhaul and upgrade nine Phalanx Close-In Weapon Systems, and manufacture two SeaRAM anti-ship missile defense systems.
  • On May 16, 2012, Raytheon Co announced that the U.S. Navy awarded them a $313.8 million contract for low-rate initial production of Standard Missile-6 all-up rounds. Work will be performed in Tucson, Ariz.; Camden, Ark.; Andover, Mass.; Huntsville, Ala.; Dallas, Texas; Hanahan, S.C.; Anniston, Ala.; San Jose, Calif.; and Middletown, Ohio, and is expected to completed by March 2015.
  • On May 14, 2012, Northrop Grumman Corp announced that it has been awarded a delivery order by the Naval Air Systems Command totaling $103 million to deliver LITENING G4 targeting systems.
  • On May 14, 2012, Raytheon Co announced that the Intelligence Advanced Research Projects Activity (IARPA), via the U.S. Army Research Laboratory (ARL), has awarded Raytheon BBN Technologies $2.5 million in funding under the METAPHOR program.
  • On May 11, 2012, L-3 Communications announced that it has been selected by the Commonwealth of Australia to provide the C-27J Spartan for the Country's Battlefield Airlifter program.
  • On May 10, 2012, The Boeing Company announced that it has completed the acquisition of Inmedius, a provider of software applications and services for managing and sharing information and learning content.
  • On May 8, 2012, Raytheon Co announced that it has been awarded $1.9 million by the U.S. Air Force Research Laboratory under the Force Protection program. BBN is a wholly owned subsidiary of Raytheon Company.
  • On May 7, 2012, Northrop Grumman Corp announced that it was awarded a three year, $84 million indefinite delivery, indefinite quantity contract to support the Naval Education Training Command (NETC) by the U.S. Navy.
  • On April 30, 2012, The Boeing Company announced that its Board of Directors declared a regular quarterly dividend of $0.44 per share. The dividend is payable June 1, 2012, to shareholders of record as of May 11, 2012.
  • On April 26, 2012, L-3 Communications raised fiscal 2012 guidance and expects net sales to be in the range of $14.550-$14.750 billion and diluted earnings per share in the range of $8.45-$8.60. According to I/B/E/S Estimates, analysts on an average were expecting the Company to report revenue of $14.48 billion and EPS of $8.49 for fiscal 2012.
  • On April 26, 2012, Northrop Grumman Corp announced that the U.S. Air Force has awarded it a $52.8 million, 27-month engineering and manufacturing development contract to upgrade its electronic attack (EA) pods.
  • On April 26, 2012, Raytheon Co announced that for fiscal 2012, it expects revenue to be in the range of $24.5-$25.0 billion, earnings per share from continuing operations in the range of $5.00-$5.15 and adjusted earnings per share in the range of $5.55-$5.70. According to I/B/E/S Estimates, analysts were expecting the Company to report revenue of $24.5 billion and EPS of $5.05 for fiscal 2012.
  • On April 26, 2012, The Boeing Company announced that it has signed an agreement to acquire Inmedius, a provider of software applications and services for managing and sharing information and learning content.
  • On April 25, 2012, Northrop Grumman Corp announced that for fiscal 2012 guidance, it expects sales to be in the range of $24.700-$25.400 billion and earnings per share in the range of $6.70-$6.95. Earlier the Company expected revenue in the range of $24.700-$25.400 billion and EPS in the range of $6.40-$6.70. According to I/B/E/S Estimates, analysts were expecting the Company to report revenue of $25.07 billion and EPS of $6.57 for fiscal 2012.
  • On April 25, 2012, The Boeing Company announced that for fiscal 2012, it expects revenue to be in the range of $78-$80 billion and earnings per share in the range of $4.15-$4.35. According to I/B/E/S Estimates, analysts are expecting the Company to report revenue of $79 billion for fiscal 2012.
  • On April 24, 2012, Raytheon Co announced that Federal Aviation Administration has awarded the Company, a two-year contract extension to continue to provide services for the Wide Area Augmentation System (WAAS), a safety system that provides satellite-based navigation in the continental United States, Alaska, Canada and Mexico.
  • On April 23, 2012, Northrop Grumman Corp announced that it has executed a Memorandum of Understanding at the Sixth National Radar Seminar in Bali, Indonesia with PT Industri Telekomunikasi Indonesia and the Research Centre For Electronics And Telecommunications of The Indonesian Institute Of Sciences to facilitate collaboration on pending ground-based radar opportunities in Indonesia.

Technical Overview


The stock has a market capitalization of $28.38B and is currently trading at $87.99 with a 52 week range of $66.36 - $92.24. The stock's year-to-date performance has been 10.61%. It is currently trading above 20, 50 and 200 SMA.

Sources: Yahoo Finance, Google Finance, Marketwatch, Finviz, Reuters.

Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

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