Lockheed Martin Q3 2021 Earnings Report
Key Takeaways
Lockheed Martin reported Q3 2021 net sales of $16.0 billion, compared to $16.5 billion in Q3 2020. Net earnings from continuing operations were $614 million, or $2.21 per share, compared to $1.8 billion, or $6.25 per share, in Q3 2020. Cash from operations was $1.9 billion. The company revises its 2021 financial outlook and provides 2022 financial trends.
Net sales of $16.0 billion.
Net earnings from continuing operations of $614 million, or $2.21 per share, after noncash pension settlement charge of $1.7 billion ($1.3 billion, or $4.72 per share, after-tax).
Generated cash from operations of $1.9 billion.
Increased share repurchase authority by $5.0 billion and quarterly dividend rate to $2.80 per share.
Lockheed Martin
Lockheed Martin
Lockheed Martin Revenue by Segment
Forward Guidance
The company expects 2022 net sales to decline from expected 2021 levels to approximately $66 billion and 2022 total business segment operating margin to be approximately 11.0%. Cash from operations in 2022 is expected to be greater than or equal to $8.4 billion, which excludes a potential decrease in 2022 cash from operations of up to $2.0 billion if the provisions in the Tax Cuts and Jobs Act of 2017 that eliminate the option to immediately deduct research and development expenditures in the period incurred and requires companies to amortize such expenditures over five years is not modified or repealed by Congress before it takes effect on Jan. 1, 2022.
Positive Outlook
- Continued support and funding of programs
- A statutory tax rate of 21%
- Known impacts of COVID-19
- Continued acceleration of supplier payments at current levels
- Total net FAS/CAS pension benefit of approximately $2.2 billion in 2022
Challenges Ahead
- Decline in net sales from expected 2021 levels to approximately $66 billion
- Potential decrease in 2022 cash from operations of up to $2.0 billion if the provisions in the Tax Cuts and Jobs Act of 2017 that eliminate the option to immediately deduct research and development expenditures in the period incurred and requires companies to amortize such expenditures over five years is not modified or repealed by Congress before it takes effect on Jan. 1, 2022.
- No assurance that the provisions in the Tax Cuts and Jobs Act of 2017 will be modified or repealed
- No significant reduction in customer budgets
- Changes in funding priorities
Revenue & Expenses
Visualization of income flow from segment revenue to net income