Lockheed Martin Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Lockheed Martin (NYSE:LMT) will unveil its latest earnings on Tuesday, July 24, 2012. Lockheed Martin is a global security company that develops and manufactures advanced technology systems and products.

Lockheed Martin Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net income of $1.92 per share, a decline of 6.8% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from $1.97. Between one and three months ago, the average estimate moved down. It has been unchanged at $1.92 during the last month. For the year, analysts are projecting profit of $7.90 per share, a decline of 4% from last year.

Past Earnings Performance: Last quarter, the company beat estimates by 32 cents, coming in at net income of $2.02 a share versus the estimate of profit of $1.70 a share. It marked the fourth straight quarter of beating estimates.

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A Look Back: In the first quarter, profit rose 26% to $668 million ($2.03 a share) from $530 million ($1.50 a share) the year earlier, exceeding analyst expectations. Revenue rose 6.2% to $11.29 billion from $10.63 billion.

Stock Price Performance: Between May 21, 2012 and July 18, 2012, the stock price had risen $4.97 (5.9%), from $83.63 to $88.60. The stock price saw one of its best stretches over the last year between March 6, 2012 and March 14, 2012, when shares rose for seven straight days, increasing 3% (+$2.64) over that span. It saw one of its worst periods between May 10, 2012 and May 18, 2012 when shares fell for seven straight days, dropping 3.9% (-$3.34) over that span.

Wall St. Revenue Expectations: Analysts predict a decline of 2.3% in revenue from the year-earlier quarter to $11.29 billion.

Key Stats:

There has enjoyed solid performance recently heading into this earnings announcement with profit rising by a year-over-year average of 2% for the last four quarters.

On the top line, the company is hoping to build on a revenue increase last quarter. Revenue fell 4.6% in the fourth quarter of the last fiscal year after increasing in the first quarter.

Analyst Ratings: There are mostly holds on the stock with 15 of 19 analysts surveyed giving that rating.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.19 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company improved this liquidity measure from 1.16 in the fourth quarter of the last fiscal year to the last quarter driven in part by an increase in current assets. Current assets increased 3.3% to $14.56 billion while liabilities rose by 0.7% to $12.21 billion.

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

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