Summary
Lockheed Martin Corporation (LMT) reported its third-quarter 2017 financial results, showing continued revenue growth driven by its core business segments. Total net sales for the quarter increased by approximately 5.3% year-over-year, reaching $12.17 billion. This growth was primarily fueled by a 14% increase in the Aeronautics segment, largely due to higher production volumes on the F-35 program, and a 4% increase in product sales across the company. Despite the top-line growth, net earnings from continuing operations saw a decrease to $939 million ($3.24 per diluted share) from $1.09 billion ($3.61 per diluted share) in the prior-year period. This decline was influenced by various factors, including a significant non-cash gain recognized in the prior year from consolidating the AWE joint venture and a charge related to the EADGE-T program. The company's strong operational cash flow remains a key strength, providing ample resources for investments, dividends, and share repurchases. Management also reiterated its positive outlook for the full year 2017, anticipating increased sales and earnings per share.
Financial Highlights
44 data points| Revenue | $12.34B |
| Cost of Revenue | $10.74B |
| Gross Profit | $1.60B |
| Operating Income | $1.68B |
| Interest Expense | $162.00M |
| Net Income | $963.00M |
| EPS (Basic) | $3.35 |
| EPS (Diluted) | $3.32 |
| Shares Outstanding (Basic) | 287.10M |
| Shares Outstanding (Diluted) | 290.00M |
Key Highlights
- 1Total net sales for Q3 2017 increased to $12.17 billion, up 5.3% from $11.55 billion in Q3 2016.
- 2Aeronautics segment sales grew significantly by 14% to $4.77 billion, driven by increased F-35 program production.
- 3Net earnings from continuing operations decreased to $939 million ($3.24/share) from $1.09 billion ($3.61/share) in the prior year.
- 4Operating profit from continuing operations was $1.43 billion, down from $1.59 billion in Q3 2016.
- 5Net cash provided by operating activities for the nine months ended September 24, 2017, was $4.96 billion, an increase from $4.46 billion in the prior year.
- 6The company repurchased $1.5 billion of its common stock during the first nine months of 2017 and declared $1.6 billion in dividends.
- 7The company updated its full-year 2017 outlook, expecting net sales to increase in the mid-single digit percentage range and diluted EPS to be between $12.85 and $13.15.