Summary
Lockheed Martin Corporation (LMT) reported strong financial performance for the first quarter of 2018, with total net sales increasing by 3.8% to $11.6 billion compared to the same period in the prior year. This growth was driven by an increase in service sales, up 17%, and a more modest 2% rise in product sales. Net earnings saw a significant jump of 46.6%, reaching $1.16 billion, translating to diluted earnings per share of $4.02, a substantial improvement from $2.69 in Q1 2017. This robust earnings growth was partly attributed to lower income tax expense due to the provisional impact of the Tax Cuts and Jobs Act of 2017. The company's operating profit also saw a healthy increase of 23.2% to $1.7 billion. This improvement was bolstered by strong performance across most segments, particularly Rotary and Mission Systems (RMS), which saw a significant operating profit increase driven by the absence of a large charge recorded in the prior year and favorable cost performance. Management anticipates continued growth in net sales and operating profit for the full year 2018, supported by increased production and sustainment volumes on key programs and improved performance in certain segments. Investors should note the company's continued commitment to returning capital to shareholders, with significant dividend payments and share repurchases.
Financial Highlights
45 data points| Revenue | $11.63B |
| Cost of Revenue | $9.98B |
| Gross Profit | $1.66B |
| Operating Income | $1.73B |
| Interest Expense | $155.00M |
| Net Income | $1.16B |
| EPS (Basic) | $4.05 |
| EPS (Diluted) | $4.02 |
| Shares Outstanding (Basic) | 285.50M |
| Shares Outstanding (Diluted) | 287.90M |
Key Highlights
- 1Total net sales increased by 3.8% to $11.635 billion in Q1 2018 compared to Q1 2017.
- 2Net earnings surged by 46.6% to $1.157 billion, with diluted EPS growing from $2.69 to $4.02.
- 3Operating profit rose by 23.2% to $1.725 billion.
- 4Service sales experienced a strong increase of 17% year-over-year.
- 5The company paid $586 million in dividends and repurchased $300 million of its stock in Q1 2018.
- 6Adoption of new accounting standards (ASC 606 and ASU 2017-07) has been reflected in all presented periods.
- 7The Aeronautics segment remains the largest contributor to net sales, driven by the F-35 program.