Summary
Lockheed Martin Corporation's (LMT) third-quarter 2020 filing for the period ending September 26, 2020, reveals a strong performance with notable year-over-year growth in net sales and earnings. The company demonstrated resilience amidst the ongoing COVID-19 pandemic, with proactive measures and government support partially mitigating disruptions. Increased sales were driven by growth across most business segments, particularly Aeronautics and Missiles and Fire Control, supported by robust demand for tactical and strike missile programs and key aircraft programs. Financially, LMT reported healthy increases in both quarterly and year-to-date net sales and earnings. The company also maintained a strong cash flow from operations, enabling continued investment in the business, shareholder returns through dividends and share repurchases, and effective management of its debt. Despite supply chain challenges and operational adjustments due to COVID-19, Lockheed Martin reaffirmed its 2020 financial outlook and provided a positive preliminary outlook for 2021, indicating continued confidence in its strategic position and operational execution.
Financial Highlights
45 data points| Revenue | $16.50B |
| Cost of Revenue | $14.36B |
| Gross Profit | $2.14B |
| Operating Income | $2.15B |
| Interest Expense | $145.00M |
| Net Income | $1.70B |
| EPS (Basic) | $6.08 |
| EPS (Diluted) | $6.05 |
| Shares Outstanding (Basic) | 279.30M |
| Shares Outstanding (Diluted) | 280.60M |
Key Highlights
- 1Net sales for the third quarter increased by 9% to $16.5 billion compared to the prior year, driven by growth in products and services across multiple segments.
- 2Diluted earnings per share (EPS) from continuing operations rose to $6.25 in the quarter, up from $5.66 in the same period last year.
- 3The company reported a significant increase in cash provided by operating activities, up $555 million year-over-year for the nine months ended September 27, 2020, reaching $6.4 billion.
- 4Lockheed Martin reaffirmed its 2020 net sales guidance, expecting them to reach approximately $65.3 billion, and provided a preliminary outlook for 2021 net sales to exceed $67 billion.
- 5The Aeronautics segment saw an 8% increase in net sales for the quarter, largely driven by the F-35 program.
- 6The company successfully managed its capital structure, with no borrowings outstanding under its $2.5 billion revolving credit facility and a substantial cash balance of $3.6 billion at quarter-end.
- 7Despite COVID-19 impacts, the company is seeking reimbursement for related costs under the CARES Act, which could affect future margins if not fully recovered at a profit.