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Lockheed Martin
🇺🇸 NYSE:LMT
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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.

Total Revenue
$15.7B
Previous year: $14.3B
+9.2%
EPS
$6.08
Previous year: $5.99
+1.5%
Effective Tax Rate
15.4%
Backlog
$144B
Gross Profit
$2.09B
Previous year: $2.19B
-4.4%
Cash and Equivalents
$1.99B
Previous year: $991M
+100.6%
Free Cash Flow
$2.31B
Total Assets
$49.2B
Previous year: $47.7B
+3.3%

Lockheed Martin

Lockheed Martin

Lockheed Martin Revenue by Segment

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

Company Overview

Full financial data and analysis

View Lockheed Martin