Summary
Lockheed Martin Corporation (LMT) reported its second-quarter 2014 financial results, showcasing a generally stable performance amidst evolving U.S. government spending dynamics. Total net sales for the quarter were $11.3 billion, a slight decrease from $11.4 billion in the prior year's quarter, primarily driven by mixed performance across its segments. Earnings per diluted share rose to $2.76 from $2.64, indicating improved profitability on a per-share basis. The company continues to navigate U.S. defense budget constraints, including sequestration, while focusing on program execution and international growth. The balance sheet shows total assets of $37.25 billion and total liabilities of $32.93 billion, resulting in stockholders' equity of $4.32 billion. Cash and cash equivalents increased to $3.44 billion from $2.62 billion at the beginning of the year, reflecting strong cash flow generation from operations, which provided $3.08 billion in the first six months of 2014. The company actively returned capital to shareholders through $1.23 billion in share repurchases and $865 million in dividends paid during the first half of the year, underscoring a commitment to shareholder returns.
Financial Highlights
41 data points| Revenue | $11.31B |
| Cost of Revenue | $9.96B |
| Gross Profit | $1.34B |
| Operating Income | $1.43B |
| Interest Expense | $85.00M |
| Net Income | $889.00M |
| EPS (Basic) | $2.81 |
| EPS (Diluted) | $2.76 |
| Shares Outstanding (Basic) | 316.80M |
| Shares Outstanding (Diluted) | 322.10M |
Key Highlights
- 1Net sales for the quarter ended June 29, 2014 were $11.306 billion, a slight decrease from $11.408 billion in the same period last year.
- 2Diluted earnings per share increased to $2.76 for the quarter ended June 29, 2014, up from $2.64 in the prior year's quarter.
- 3Operating profit for the quarter was $1.426 billion, an increase from $1.298 billion in the prior year's quarter.
- 4The Aeronautics segment saw a significant increase in net sales driven by production contracts and aircraft deliveries.
- 5Information Systems & Global Solutions (IS&GS) segment experienced a decline in net sales due to program wind-downs and reduced funding.
- 6Cash and cash equivalents increased to $3.44 billion as of June 29, 2014, up from $2.62 billion at the end of 2013.
- 7The company repurchased $1.23 billion of its common stock and paid $865 million in dividends in the first six months of 2014.