Lockheed Martin Earnings: Higher-Than-Expected Net Income

S&P 500 (NYSE:SPY) component Lockheed Martin (NYSE:LMT) reported net income above Wall Street’s expectations for the second quarter. Lockheed Martin is a global security company that develops and manufactures advanced technology systems and products.

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Lockheed Martin Earnings Cheat Sheet

Results: Net income for Lockheed Martin rose to $781 million ($2.38 per share) vs. $742 million ($2.14 per share) in the same quarter a year earlier. This marks a rise of 5.3% from the year-earlier quarter.

Revenue: Rose 3.3% to $11.92 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Lockheed Martin beat the mean analyst estimate of $1.92 per share. It beat the average revenue estimate of $11.29 billion.

Quoting Management: “Our solid performance in the second quarter is a result of our responsive strategy and dedicated team that focus on delivering value to our customers and shareholders,” said Bob Stevens, Lockheed Martin chairman and chief executive officer. “While the threat of sequestration has created uncertainty for our industry, we are maintaining an unwavering commitment to program execution and cost reduction throughout the organization.”

Key Stats:

The company has now surpassed analyst estimates for four quarters in a row. It beat the mark by 32 cents in the first quarter, by 59 cents in the fourth quarter of the last fiscal year, and by 26 cents in the third quarter of the last fiscal year.

Net income has increased 2.7% year-over-year on average across the last five quarters. The biggest gain came in the first, when income climbed 26% from the year-earlier quarter.

Looking Forward: The outlook for the company’s results in the upcoming quarter is unfavorable. The average estimate for the third quarter is $1.97 per share, down from $2.04 ninety days ago. The average estimate for the fiscal year is $7.90 per share, a rise from $7.86 ninety days ago.

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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