Lockheed Martin Q4 2020 Earnings Report
Key Takeaways
Lockheed Martin reported Q4 2020 net sales of $17.0 billion, up from $15.9 billion in Q4 2019, and net earnings from continuing operations of $1.8 billion, or $6.38 per share, compared to $1.5 billion, or $5.29 per share, in Q4 2019. The company also announced an agreement to acquire Aerojet Rocketdyne.
Net sales reached $17.0 billion, compared to $15.9 billion in the same quarter of the previous year.
Net earnings from continuing operations were $1.8 billion, or $6.38 per share, up from $1.5 billion, or $5.29 per share, in the prior year.
Cash from operations amounted to $1.8 billion, compared to $1.5 billion in the fourth quarter of 2019.
An agreement to acquire Aerojet Rocketdyne was announced.
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Lockheed Martin Revenue by Segment
Forward Guidance
Lockheed Martin provided its 2021 financial outlook, which reflects the anticipated impacts from the COVID-19 pandemic and the UK Ministry of Defense’s intent to re-nationalize the Atomic Weapons Establishment program (AWE program) on June 30, 2021. The outlook does not incorporate the pending acquisition of Aerojet Rocketdyne Holdings, Inc.
Positive Outlook
- Net sales are projected to be between $67.1 billion and $68.5 billion.
- Business segment operating profit is expected to range from $7.355 billion to $7.495 billion.
- Diluted earnings per share are forecasted to be between $26.00 and $26.30.
- Cash from operations is anticipated to be at least $8.3 billion.
- The outlook includes a net FAS/CAS pension adjustment of approximately $2.330 billion.
Challenges Ahead
- The 2021 financial outlook reflects the anticipated impacts from the coronavirus disease 2019 (COVID-19) global pandemic based on the corporation’s understanding at the time of this news release.
- The ultimate impacts of COVID-19 on the corporation’s financial outlook for 2021 and beyond remains uncertain and there can be no assurance that the corporation’s underlying assumptions are correct.
- The 2021 financial outlook reflects the UK Ministry of Defense’s intent to re-nationalize the Atomic Weapons Establishment program (AWE program) on June 30, 2021.
- The 2021 financial outlook does not incorporate the pending acquisition of Aerojet Rocketdyne Holdings, Inc. announced on Dec. 20, 2020.
- The corporation’s 2021 financial outlook for cash from operations is net of $1.0 billion in expected discretionary contributions to its qualified defined benefit pension plans.
Revenue & Expenses
Visualization of income flow from segment revenue to net income