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Mar 29, 2020
Lockheed Martin Q1 2020 Earnings Report
Lockheed Martin's first quarter earnings increased, driven by strong sales and operational performance.
Key Takeaways
Lockheed Martin reported strong first-quarter results with net sales of $15.7 billion and net earnings of $1.7 billion, or $6.08 per share. The company's cash from operations was $2.3 billion, and it maintained a backlog of approximately $144 billion. The company updated its 2020 outlook for sales and maintained its outlook for operating profit, earnings per share, and cash from operations.
Net sales reached $15.7 billion, demonstrating a 9% increase compared to Q1 2019.
Net earnings amounted to $1.7 billion, resulting in earnings per share of $6.08.
Cash from operations totaled $2.3 billion, showcasing strong cash generation capabilities.
The company maintained a robust backlog of approximately $144 billion, indicating future revenue potential.
Lockheed Martin
Lockheed Martin
Lockheed Martin Revenue by Segment
Revenue by Segment
Aeronautics Revenue
CapyFin.comMissiles & Fire Control Revenue
CapyFin.comRotary & Mission Systems Revenue
CapyFin.comSpace Revenue
CapyFin.com Forward Guidance
Lockheed Martin updated its 2020 guidance for net sales to reflect the currently expected impacts related to COVID-19. The ultimate impact of COVID-19 on the corporation’s financial outlook for 2020 remains uncertain.
Positive Outlook
- Production facilities continue to operate.
- No significant work stoppages or closures are expected.
- The company is able to mitigate any supply chain disruptions and these do not worsen.
- The company is able to recover its costs under contracts.
- Government funding priorities do not change.
Challenges Ahead
- The ultimate impact of COVID-19 on the corporation’s financial outlook for 2020 remains uncertain.
- The corporation’s 2020 outlook does not include any non-cash impairment charge related to its equity method investment in AMMROC.
- Potential impacts to the corporation’s programs, including the F-35 program, resulting from U.S. Government actions related to Turkey.
- Differences between these assumed values and actual values will affect the corporation’s plan funded status and stockholders’ equity as measured at year-end 2020.
- Future changes in expectations for sales, earnings and cash flows related to intangible assets and goodwill below its current projections could cause these assets to be impaired.
Revenue & Expenses
Visualization of income flow from segment revenue to net income