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Lockheed Martin Third Quarter Earnings
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LMT
Lockheed Martin (NYSE:LMT) announced its results for the third quarter on October 24, 2012. Lockheed Martin is a global security company that develops and manufactures advanced technology systems and products.
In most situations, when earnings do not meet analyst estimates, a business' stock price will tend to drop. On the other hand, when actual earnings beat estimates by a significant amount, the share price will likely surge. SEE: 12 Things You Need To Know About Financial Statements
The Numbers: Lockheed Martin's latest numbers were good, as the company announced EPS and revenues that came in ahead predictions. The company reported $2.21 per share versus the $1.85 per share estimate and revenues of $11.87 billion versus the $11.29 billion estimate. EPS rose 11.1% while revenue declined 2.1% from the same period last year. Slumping revenue in the last quarter ends Lockheed Martin's streak of two consecutive quarters of revenue increases. Net income for the third quarter was $727 million. According to the reported number, this is up 3.9% from last year's figures. Last quarter marked the third in a row of rising net income.
Management Quote: "Our strong operating results this quarter are a reflection of several factors, including our relentless focus on affordability and program execution," said Bob Stevens, chairman and chief executive officer. "We also have a strategy that is aligned with our customers, a proven portfolio of products and technologies, and a team that is talented and dedicated, even with the uncertainties that lie ahead. We remain focused on meeting our customer commitments and delivering value to our shareholders."
A Look Back: Net income has increased 5.4% year-over-year on average across the last five quarters. The biggest gain came in the first quarter, when income climbed 26% from the year-earlier quarter.
Looking Ahead: The outlook for the company's results in the upcoming quarter is unfavorable. The average estimate for the fourth quarter is $1.85 per share, down from $1.88 90 days ago. Decreasing earnings estimates is generally a negative sign as it suggests analyst believe future earnings to be weaker than previously anticipated. The average estimate for the fiscal year is $8.10 per share, a rise from $8.05 90 days ago.
In most situations, when earnings do not meet analyst estimates, a business' stock price will tend to drop. On the other hand, when actual earnings beat estimates by a significant amount, the share price will likely surge. SEE: 12 Things You Need To Know About Financial Statements
The Numbers: Lockheed Martin's latest numbers were good, as the company announced EPS and revenues that came in ahead predictions. The company reported $2.21 per share versus the $1.85 per share estimate and revenues of $11.87 billion versus the $11.29 billion estimate. EPS rose 11.1% while revenue declined 2.1% from the same period last year. Slumping revenue in the last quarter ends Lockheed Martin's streak of two consecutive quarters of revenue increases. Net income for the third quarter was $727 million. According to the reported number, this is up 3.9% from last year's figures. Last quarter marked the third in a row of rising net income.
Management Quote: "Our strong operating results this quarter are a reflection of several factors, including our relentless focus on affordability and program execution," said Bob Stevens, chairman and chief executive officer. "We also have a strategy that is aligned with our customers, a proven portfolio of products and technologies, and a team that is talented and dedicated, even with the uncertainties that lie ahead. We remain focused on meeting our customer commitments and delivering value to our shareholders."
A Look Back: Net income has increased 5.4% year-over-year on average across the last five quarters. The biggest gain came in the first quarter, when income climbed 26% from the year-earlier quarter.
Looking Ahead: The outlook for the company's results in the upcoming quarter is unfavorable. The average estimate for the fourth quarter is $1.85 per share, down from $1.88 90 days ago. Decreasing earnings estimates is generally a negative sign as it suggests analyst believe future earnings to be weaker than previously anticipated. The average estimate for the fiscal year is $8.10 per share, a rise from $8.05 90 days ago.
by
Investopedia Staff
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