Aerospace and defense giant Lockheed Martin Corp. (NYSE:LMT) fell in pre-market trading as the company’s Aeronautics segment left investors disappointed. This business segment posted revenues of $6.71 billion, which were down 5% year-over-year. For reference, analysts were expecting a decline of 3.8%. The drop in revenues was due to delayed delivery of the company’s F-35 jets amid higher demand.
The company reported better-than-expected earnings for its third quarter of Fiscal Year 2023. Indeed, earnings came in at $6.73 per share compared to earnings of $6.71 in the same period last year. This beat analysts’ consensus estimate of $6.67 per share.
The company’s sales increased by 2% year-over-year to $16.9 billion, surpassing analysts’ expectations of $16.7 billion. In addition, it generated free cash flows of $2.5 billion in the third quarter.
Lockheed Martin’s Chairman, President, and CEO Jim Taiclet commented, “Our backlog remains robust at $156 billion as both domestic and international orders were strong.”
Moreover, the company raised its quarterly dividend to $3.15 per share and increased its stock buyback by $6 billion to $13 billion.
Looking forward, Lockheed Martin reiterated its FY23 outlook and continues to expect revenues in the range of $66.25 billion to $66.75 billion, with diluted earnings projected to be between $27 and $27.20 per share.
Is LMT a Buy, Hold or Sell?
Analysts remain sidelined about LMT stock with a Hold consensus rating based on two Buys, 11 Holds, and one Sell. The average LMT price target of $495 implies an upside potential of 12.4% from current levels.
