Lockheed Martin slumps after Q2 miss, full-year guidance cut

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Lockheed Martin (NYSE:LMT) -3.7% pre-market on Tuesday after missing Q2 earnings and revenue estimates, and lowering its full-year EPS and revenue guidance as F-35 fighter jet sales fell amid pandemic-related headwinds.

Q2 net earnings fell to $309M, or $1.16/share, which included $1.7B in non-operational charges, from $1.8B, or $6.52/share, in the year-earlier quarter.

Q2 net sales by segment: Aeronautics -12% Y/Y to $5.86B, Rotary and Mission Systems -5.4% to $4.01B, Space -11% to $2.83B, Missiles and Fire Control -6.7% to $2.75B.

Operating profit fell 10% Y/Y to $1.96B; by segment - Aeronautics +7% Y/Y to $612M, Rotary and Mission Systems -12% to $403M, Space -20% to $268M, Missiles and Fire Control +4.2% to $418 million.

Backlog fell 5% Y/Y to $134.6B; cash flow from operations rose 5% to $1.33B.

Lockheed Martin (LMT) lowered FY 2022 EPS guidance to $21.55 from its prior outlook of $26.70 and sales guidance to $65.25B from prior guidance of $66B.

CFO Jay Malave told Reuters that problems stemming from winter and early spring COVID-19 outbreaks had hit the company and its suppliers, slowing production.

Lockheed (LMT) and the Department of Defense on Monday reached a handshake deal to deliver the next three lots of F-35 Joint Strike Fighters.

Comments

[Vikdan]

Great company, but missed the boat on the Aerojet acquisition. Northrop is in sole position with their take out of Orbital. Their Hypersonic Missile program is lagging against Raytheon's. Losing that bid would be very bad.

Not the best conditions for the "new" CEO with the pandemic and supply chain, but on the other hand: he was left with a good starting point. Time to consider replacing him.

[blah64]

@Vikdan this seems political, i agree they should have pushed the aerojet thru before this admin. they screwed up bigtime. whenever there is a change in DC, they need to agressiviley go after aero again or another similar oribital transport type company.
i said earlier on another post this ceo needs to go, Marilyn Hewson was better mabey she saw what was coming and bailed, who knows.

[larrylivingston]

@blah64 LMT is behind the curve compared to NOC. Personally, I put all my defense allocation on NOC, and not bothered with LMT.

[blah64]

@larrylivingston yea i missed the boat twice with NOC and now i'm payin the price.
who knows if it drops for whatever reason i can start a position.

[jackmaster20]

There is a major regional war in Eastern Europe.......that's
using huge amounts of artillery and missiles....!!
LMT misses in this environment....????

I am wondering if LMT has the right CEO on the job.
This new CEO from the outside seems to underwhelm
on most execution fronts.

LMT is not a cell tower company...!

I think its time LMT consider new CEO candidates.

[kata]

@jackmaster20

Sometimes new CEOs clean house on anything they can throw in, so their tenure looks better. It's the kitchen sink qtr. But if he can't make money in this environment, he'll never make it. See what happens next qtr. If he can't right the ship, he's gone.

[heckinvest]

Agreed. LMT going nowhere under Taiclet.

[jackmaster20]

@kata

He has been there for 2 years........

[Ted Waller]

They better be right that the decline was due to things beyond their control, but they always have an excuse.

[Real007]

Dump

[RoseNose]

LMT is a powerful quality (S&P rated A-) defensive company and is now looking to be at fair value. It was over valued like many other companies. However, that is an awful earnings decline, but it is still making plenty of $. I am holding and staying long and collecting a nice dividend which has risen now for 19 years. Tough times in a tough market. Anyone that might want to own this, save some $ and watch for 3.3% for a bargain buy. JIMHO. Rose:))

[sd55]

@RoseNose Agree 100%. I have a near full holding at 3.25%. If sp drops to $330 or below I may buy a few more shares; 2/3 of prior buys are in $324 - $344 range.

[MikeyFL]

Screw after hours, less than 1% down 7 minutes into the open. That's not a slump. The headlines on SA are more like clickbait.

[Money 29]

When the yield hits 3%, add shares to best of breed LMT.

[JB5678]

Lmt got overvalued at the start of the Russia-Ukraine war. Trending back to fair value now. I haven’t dug into the report, but at first glance it doesn’t look good.

[Joe de Mencia]

"Lockheed Martin (LMT) lowered FY 2022 EPS guidance to $21.55 from its prior outlook of $26.70..."

ugly

[Chefboy6969]

under promise over deliver.
If this stock drops a little more i will be adding.
Solid investment here

[VinnV]

@Chefboy6969 Same here. Confident on a rebound.

[blah64]

the mgmt of this company is for shit. get rid of them.

[Prosper-together]

Poor leadership and mismanagement. I don't buy the reason of supply chain. The shareholders should insist on management change.

[correct way to invest]

adding

[GameKing13]

I mean if a weapons manufacturer can’t make money during a legitimate real war, who can?

I’m going to steer clear from buying anything until after this earnings season. I advise you guys to do the same… Every stock will drop her you

[correct way to invest]

@GameKing13 HASBRO AND JNJ are up

[correct way to invest]

@GameKing13 the stock is up 9 percent ytd excluding dividends. Outstanding

[GameKing13]

@correct way to invest which stock?

Again, I’m not saying that stuff isn’t going to own, and I’m also not saying anything about this past year has performance. I’m simply referring to the next few weeks.