Lockheed Martin Corp (LMT) reported first-quarter revenues and earnings ahead of expectations, driven by strong demand for its products and services. The results came amid an exciting earnings season, with many companies reporting better-than-expected financial performance.
Analysts have varying opinions on Lockheed Martin’s stock following the earnings release. Goldman Sachs analyst Noah Poponak reiterated a Sell rating while raising the price target from $377 to $378. Poponak said in a note that Lockheed Martin reported first-quarter earnings of $6.33 per share, surpassing consensus of $5.82 per share. He added that revenues came in 7% higher than expected.
However, Poponak also noted that Lockheed Martin’s margins were short of expectations and that the company recorded a loss on a “large classified missile program.” He added that the company’s margins could remain under pressure “for an extended period, while broader industry margins remain a question as the Pentagon has aimed to balance risk sharing with contractors.”
Truist Securities analyst Michael Ciarmol said in a note that Lockheed Martin’s normalized revenue growth was 5% year-on-year in the first quarter, adjusting for an extra calendar week. He added that the total backlog of $159.4 billion was slightly lower sequentially.
“All aspects of 2024 guidance were reaffirmed, budget deal and supplemental may drive upside to the midpoint of rev growth, but likely YOY growth decelerates for the remainder of 2024,” the analyst wrote.
He further stated that Lockheed Martin remains on track for 75 to 110 of F-35 deliveries, depending on the receipt of TR-3 hardware.
Shares of Lockheed Martin had declined by 0.0065% to $460.05 at the time of publication on Wednesday.
