Should Lockheed Stock Be in Your Portfolio Ahead of Q3 Earnings Report?

Should Lockheed Stock Be in Your Portfolio Ahead of Q3 Earnings Report?

Benzinga
October 16, 2024

Lockheed Martin Corporation (NYSE: LMT) is slated to release third-quarter 2024 results on Oct. 22, before the opening bell.

The Zacks Consensus Estimate for revenues is pegged at $17.28 billion, implying 2.4% growth from the year-ago quarter's reported figure. The consensus mark for third-quarter earnings is pegged at $6.43 per share, suggesting a 5% decline from $6.77 reported in the prior-year quarter. The bottom-line estimate has inched up 0.5% in the past 60 days.

Image Source: Zacks Investment Research

LMT, America's largest defense contractor, has an impressive earnings surprise history. Its earnings outpaced the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 7.46%.

Image Source: Zacks Investment Research

Earnings Whisper for LMT

Our proven model predicts an earnings beat for Lockheed this time around. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat, which is the case here.

Lockheed has a Zacks Rank #3 and an Earnings ESP of +2.46%.

Factors Shaping LMT's Upcoming Q3 Results

A potential solid sales improvement from each of LMT's four business segments is likely to have bolstered the company's top-line performance.

Aeronautics to Post Solid Sales

The Aeronautics segment, which primarily manufactures advanced, combat-proven jets, and contributes almost 40% to the company's top line, is likely to deliver impressive third-quarter results.

A ramp-up in the production of the F-16 program, along with higher sales volume from production and sustainment contracts for the F-35 program, is likely to have bolstered this segment's top line.

The Zacks Consensus Estimate for the Aeronautics unit's third-quarter revenues is pegged at $6,764.8 million, indicating a 0.7% rise from the prior-year period's reported figure.

Impressive Projections From Other Segments

The remaining three segments are also projected to have performed favorably in the to-be-reported quarter.

Higher sales volume from the hypersonic development programs, ...

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