April 23, 2013 12:39 PM | 2 min read |
27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.
(NYSE: LMT) is flying high Tuesday after blowing away EPS and revenue estimates. The Bethesda, Maryland-based firm's first-quarter EPS soared nearly 15 percent to $2.33, destroying expectations of $2.04.Revenue declined 1.8 percent to $11.1 billion, but flew in above estimates of about $10.3 billion.
Missiles Cruise Upward, Space Systems Blast Off, Aeronautics DescendThe world's largest defense contractor's missiles and fire control segment grew most during the quarter, jumping 12.6 percent to $1.99 billion. The segment skyrocketed largely on increased sales of tactical missiles. Its space systems segment climbed a healthy 3.5 percent to $1.96 billion, primarily due to higher strategic and defense missile sales as well as increased volume on government satellite programs. Lockheed's mission systems & training along with its information systems & global solutions segments remained relatively flat, finishing with sales of $1.83 and $2.12 billion, respectively. Meanwhile, the company's aeronautics segment experienced the only significant decline during the quarter, falling 14 percent to $3.19 billion. The firm attributed this to lower aircraft sales, including a sharp decline in deliveries of its C-130J, C-5M and F-16 models.
Lockheed Lands Multiple Contracts in AprilOn April 3, Lockheed announced it won a $57 million contract to upgrade the US Navy's electronic warfare defenses against anti-ship missile threats. It also noted a $146 million contract to provide the US Army with an advanced, simulation-based training system on the same day. Then, on April 16, the company landed a $12 million contract to modernize the air tasking order capabilities within the US Air Force's Theater Battle Management Core System. The contract has a base period of performance through March of 2015 followed by three one-year options. Additionally, the firm has won several other contracts during the first half of 2013, adding another several hundred million dollars to the tally.
Reduced Sales OutlookIn January, Lockheed provided sales guidance of $44.5 to $46 billion. Now, with sequestration in effect, the company believes revenue will close in the low-end of that range. With this in mind, it is likely the firm will finish below current expectations of $45.12 billion. Meanwhile, EPS guidance has not changed and stands at $8.80 to $9.10 per share. At the middle-ground of $8.95, it would top the Wall Street consensus of $8.92.
Four-and-a-Half Year HighDespite its reduced sales guidance, Lockheed's successful earnings have sent it skyward. The stock is at a 4 ½-year high of around $98 in the late morning hours of trading. Lockheed Martin is up approximately 2.5 percent on Tuesday.
27% profit every 20 days?
This is what Nic Chahine averages with his option buys. Not selling covered calls or spreads… BUYING options. Most traders don’t even have a winning percentage of 27% buying options. He has an 83% win rate. Here’s how he does it.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.