Lockheed Martin’s Q1 Earnings to Rise About 4%; Goal Value $425

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Bethesda, Maryland-based world safety and aerospace firm Lockheed Martin is anticipated to report its first-quarter earnings of $6.31 per share on Tuesday, which represents year-over-year progress of about 4% from $6.08 per share seen in the identical quarter a 12 months in the past.

The world’s largest protection contractor would submit income progress of over 5% to round $16.4 billion. It’s value noting that within the final 4 consecutive quarters, on common, the corporate has delivered an earnings shock of over 2%.

Based on analysts at TREFIS, revenues and earnings to look at 4% and 6% progress in 2021, respectively.

Lockheed Martin shares, which fell about 9% final 12 months, rebounded over 10% to this point this 12 months.

Analyst Feedback

“We see roughly in line EPS of $6.33 (+4% y/y) on close to consensus income of $16.45B (+5%). That is in step with weapons outlays (practically +7% in Jan-Feb), which is usually correlated with sector gross sales progress, whereas our Q1 section margin of 10.9% is barely under Q1:20’s 11.0%,” famous Cai von Rumohr, fairness analyst at Cowen.

“2021 income information is unlikely to vary after solely 1Q, so the midpoint of $67.8B nonetheless might lag Avenue’s $68.06B. We est. the section margin of 11.0% in step with the midpoint of steerage. Diluted EPS midpoint of $26.15 lags Avenue’s $26.34.”

Lockheed Martin Inventory Value Forecast

Seven analysts who supplied inventory rankings for Lockheed Martin within the final three months forecast the common worth in 12 months of $425.33 with a excessive forecast of $445.00 and a low forecast of $394.00.

The typical worth goal represents an 8.56% enhance from the final worth of $391.81. Of these seven analysts, 5 rated “Purchase”, two rated “Maintain” whereas none rated “Promote”, in accordance with Tipranks.

Morgan Stanley gave the bottom goal worth of $445 with a excessive of $633 below a bull situation and $310 below the worst-case situation. The agency gave an “Chubby” ranking on the aerospace firm’s inventory.

“We view Lockheed as one of the well-positioned firms with management positions in hypersonics, directed power, autonomy, multi-domain operations, and area. Moreover, the corporate has one of the well-insulated and visual earnings profiles within the group because of the F-35 program that makes up practically 30% of complete firm revenues that’s paired with multi-decade visibility,” stated Kristine Liwag, fairness analyst at Morgan Stanley.

“Our prime Protection choose is Lockheed and we anticipate the inventory to outperform protection friends as a consequence of its defensible portfolio, regular execution, robust free money circulate technology, and underlevered steadiness sheet.”

A number of different analysts have additionally up to date their inventory outlook. UBS raised the inventory worth forecast to $425 from $400. In January, Berenberg lowered the goal worth to $400 from $425 and JP Morgan lower the worth goal to $397 from $410.

Take a look at FX Empire’s earnings calendar



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