Summary
Lockheed Martin Corporation reported strong first-quarter 2020 results, with total net sales increasing by 9% to $15.7 billion year-over-year. This growth was primarily driven by the Aeronautics and Space segments, fueled by increased production volumes in key programs like the F-35 Joint Strike Fighter and strategic/missile defense programs. Net earnings remained stable at $1.7 billion, with diluted earnings per share rising slightly to $6.08 from $5.99 in the prior year, benefiting from share repurchases. The company maintained a robust cash position, with significant cash provided by operating activities, underscoring its financial stability amidst the initial impacts of the COVID-19 pandemic, which the company stated had not yet materially affected its overall performance. Despite the positive financial performance, Lockheed Martin faces ongoing geopolitical and operational complexities. The company continues to manage risks associated with government contract structures, potential supply chain disruptions from COVID-19, and specific program challenges, such as the F-35 program's relationship with Turkey and performance issues on certain development projects. The company's outlook for 2020 anticipates mid-single digit sales growth, with profit margins around 10.9%, though future impacts of the pandemic remain uncertain. Investors should monitor the company's ability to navigate supply chain challenges, manage program execution, and adapt to evolving government funding and regulatory environments.
Financial Highlights
43 data points| Revenue | $15.65B |
| Cost of Revenue | $13.56B |
| Gross Profit | $2.09B |
| Operating Income | $2.12B |
| Interest Expense | $148.00M |
| Net Income | $1.72B |
| EPS (Basic) | $6.10 |
| EPS (Diluted) | $6.08 |
| Shares Outstanding (Basic) | 281.30M |
| Shares Outstanding (Diluted) | 282.60M |
Key Highlights
- 1Total net sales increased by 9% to $15.65 billion for the quarter ended March 29, 2020, compared to $14.34 billion in the prior year period.
- 2Net earnings were $1.717 billion, a slight increase from $1.704 billion in the first quarter of 2019.
- 3Diluted earnings per share (EPS) improved to $6.08 from $5.99, partly due to share repurchases.
- 4The Aeronautics segment saw a significant increase in net sales ($6.37 billion from $5.58 billion), driven by the F-35 program.
- 5Cash provided by operating activities increased substantially to $2.31 billion from $1.66 billion year-over-year.
- 6The company ended the quarter with a strong cash and cash equivalents balance of $1.99 billion, up from $0.99 billion at the end of Q1 2019.
- 7Despite initial impacts, the company stated that COVID-19 had not yet materially affected its operating results or business in the first quarter of 2020.