Summary
Lockheed Martin Corporation reported strong performance for the third quarter and first nine months of 2015, with total net sales of $11.46 billion and $33.22 billion, respectively. Net earnings stood at $865 million for the quarter and $2.67 billion for the nine-month period. A significant development during the quarter was the announcement of the agreement to acquire Sikorsky Aircraft Corporation for $9.0 billion, which is expected to close in the fourth quarter of 2015 and will be integrated into the Mission Systems and Training segment. The company also announced a strategic review of certain government IT infrastructure services and technical services businesses, which may result in a spin-off, Reverse Morris Trust transaction, or sale. Cash flow from operations remained robust, providing ample funding for investments and shareholder returns. The company repurchased $2.4 billion of its stock and paid $1.4 billion in dividends during the first nine months of the year. Management reiterated its commitment to returning cash to shareholders and managing debt levels. Despite potential headwinds from U.S. government funding constraints and ongoing sequestration, Lockheed Martin expressed confidence in its ability to manage these challenges and continue delivering value.
Financial Highlights
43 data points| Revenue | $10.06B |
| Cost of Revenue | $8.96B |
| Gross Profit | $1.10B |
| Operating Income | $1.19B |
| Interest Expense | $104.00M |
| Net Income | $865.00M |
| EPS (Basic) | $2.80 |
| EPS (Diluted) | $2.77 |
| Shares Outstanding (Basic) | 308.40M |
| Shares Outstanding (Diluted) | 312.70M |
Key Highlights
- 1Total net sales for Q3 2015 increased 3% to $11.46 billion, and for the first nine months increased 0.4% to $33.22 billion year-over-year.
- 2Net earnings for Q3 2015 were $865 million ($2.77 per diluted share), and for the first nine months were $2.67 billion ($8.45 per diluted share).
- 3Announced definitive agreement to acquire Sikorsky Aircraft Corporation for $9.0 billion, expected to close in Q4 2015.
- 4Initiated a strategic review of government IT infrastructure services and technical services businesses.
- 5Generated $3.74 billion in net cash from operating activities for the first nine months of 2015.
- 6Returned significant capital to shareholders through $2.4 billion in share repurchases and $1.4 billion in dividends paid during the first nine months of 2015.
- 7Total assets grew to $39.62 billion as of September 27, 2015, up from $37.07 billion at year-end 2014.