Summary
Lockheed Martin Corporation (LMT) reported strong financial results for the six months ended June 24, 2018, demonstrating robust revenue growth and improved profitability. Total net sales increased by 5.2% to $25.0 billion, driven by higher product and service sales across key segments, particularly Aeronautics and Missiles and Fire Control (MFC). Net earnings saw a significant jump of 33% to $2.3 billion, resulting in diluted earnings per share (EPS) of $8.07, up from $5.97 in the prior year period. This performance was bolstered by a favorable tax rate reduction following the Tax Cuts and Jobs Act of 2017 and operational efficiencies, particularly within the Rotary and Mission Systems (RMS) segment. Key financial highlights include strong performance in product sales, notably from the F-35 program, and a significant increase in service sales driven by demand in Aeronautics and RMS. The company also managed its cash effectively, with net cash provided by operating activities at $560 million for the first half of the year, supporting significant dividend payments and share repurchases. While facing ongoing complexities in government funding and program execution, Lockheed Martin's diversified portfolio and strategic investments position it for continued growth and profitability.
Financial Highlights
44 data points| Revenue | $13.40B |
| Cost of Revenue | $11.64B |
| Gross Profit | $1.75B |
| Operating Income | $1.79B |
| Interest Expense | $165.00M |
| Net Income | $1.16B |
| EPS (Basic) | $4.08 |
| EPS (Diluted) | $4.05 |
| Shares Outstanding (Basic) | 285.00M |
| Shares Outstanding (Diluted) | 287.10M |
Key Highlights
- 1Total net sales for the six months ended June 24, 2018, increased 5.2% to $25.033 billion, compared to $23.775 billion in the prior year period.
- 2Net earnings for the six months increased significantly by 33% to $2.320 billion, compared to $1.744 billion in the prior year period.
- 3Diluted earnings per share (EPS) rose to $8.07 for the six months, up from $5.97 in the prior year period.
- 4Product sales increased by 3% to $20.912 billion for the six months, driven by growth in Aeronautics and MFC.
- 5Service sales increased by 16% to $4.121 billion for the six months, primarily due to growth in Aeronautics and RMS.
- 6The company recorded severance and restructuring charges of $96 million during the second quarter of 2018, impacting the RMS segment.
- 7Effective January 1, 2018, the company adopted ASC 606 (Revenue from Contracts with Customers) and ASU 2017-07 (Compensation-Retirement Benefits), which adjusted prior period reporting for comparability.