10-QPeriod: Q1 FY2019

LOCKHEED MARTIN CORP Quarterly Report for Q1 Ended Mar 31, 2019

Filed April 24, 2019For Securities:LMT

Summary

Lockheed Martin Corporation (LMT) reported strong financial results for the first quarter of 2019, with total net sales increasing by 23% year-over-year to $14.3 billion. This significant growth was driven by robust performance across all business segments, particularly Aeronautics and Missiles and Fire Control (MFC), fueled by increased production volumes and new contract awards. Net earnings surged by 47% to $1.7 billion, translating to a diluted EPS of $5.99, up from $4.02 in the prior year's quarter. The company also demonstrated solid cash flow generation, with net cash provided by operating activities significantly increasing year-over-year. The strong operational performance and healthy cash generation position Lockheed Martin favorably for continued growth and shareholder returns.

Financial Statements
Beta
Revenue$14.34B
Cost of Revenue$12.15B
Gross Profit$2.19B
Operating Income$2.28B
Interest Expense$171.00M
Net Income$1.70B
EPS (Basic)$6.03
EPS (Diluted)$5.99
Shares Outstanding (Basic)282.50M
Shares Outstanding (Diluted)284.30M

Key Highlights

  • 1Total net sales increased by 23% to $14.3 billion, driven by strong performance in Aeronautics (+27%) and MFC (+40%).
  • 2Net earnings saw a substantial increase of 47% to $1.7 billion.
  • 3Diluted earnings per share (EPS) rose to $5.99, up from $4.02 in the prior year's quarter.
  • 4Net cash provided by operating activities increased significantly by $1.0 billion year-over-year, reaching $1.66 billion.
  • 5The company repurchased 1.0 million shares of common stock for $284 million during the quarter.
  • 6The backlog remained strong at $133.5 billion, with an expectation to recognize approximately 37% over the next 12 months.
  • 7The F-35 program continues to be a major contributor, accounting for approximately 26% of total net sales.

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