Shares of Lockheed Martin (LMT) fell 3.34% on Monday after the company delivered mixed second-quarter financial results. The company delivered net earnings of $1.8 billion, or $6.52 per share, versus the $6.53 that analysts expected. Q2 earnings included a loss of $225 million recorded at Aeronautics.
Revenues topped estimates, coming in at $17 billion against consensus estimates of $16.93 billion and above the $16.2 billion reported the same quarter last year. In defense of the Q2 results, CEO James Taiclet affirmed the extraordinary resolve of the employees to rise above the pandemic challenges. (See Lockheed Martin stock charts on TipRanks)
Taiclet stated, “Our teams continue to deliver on key platform programs while also advancing technologies critical for 21st century deterrence and scientific discovery.”
Following the mixed Q2 results, Lockheed Martin has reiterated its full-year guidance for sales, segment operating profit, and cash for operations. However, it has raised its earnings per share guidance for the year.
For the full year, net sales are expected to range between $67.3 billion and $68.7 billion. Earnings per share are expected to range between $26.70 and $27.00, up from the initial guidance of $26.40 – $26.70
Following the Q2 financial results, Stifel analyst Joseph DeNardi reiterated a Buy rating on the stock. The analyst has raised his stock price target to $468 from $415 a share, implying 27.16% upside potential to current levels.
DeNardi stated, “Lockheed reported 2Q21 EPS of $6.52 which was $0.04 ahead of our estimate and $0.01 below consensus. Results included a $0.61 charge at Aeronautics related to a classified program, which the company believes it has fully derisked. Excluding the charge, total segment margin would have been 11.7% led by stronger margins at LMT’s remaining three segments.”
Consensus among analysts is a Strong Buy based on 3 Buys and 1 Hold. The average Lockheed Martin price target of $432.75 implies 17.58% upside potential to current levels.
LMT scores a 9 out of 10 on TipRanks’ Smart Score rating system, indicating that the stock has strong potential to outperform market expectations.
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