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Market Overview

Lockheed Martin Earnings Preview

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On Tuesday, January 26, Lockheed Martin (NYSE:LMT) will release its latest earnings report. Benzinga's outlook for Lockheed Martin is included in the following report.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Wall Street analysts see Lockheed Martin reporting earnings of $6.41 per share on sales of $16.92 billion. In the same quarter last year, Lockheed Martin reported earnings per share of $5.29 on sales of $15.88 billion.

Why Analyst Estimates And Earnings Surprises Are Important

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to match the consensus estimate when it reports Tuesday, EPS would be up 21.17%. Sales would be up 6.56% from the year-ago period. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q3 2020 Q2 2020 Q1 2020 Q4 2020
EPS Estimate 6.09 5.72 5.80 5.02
EPS Actual 6.25 5.79 6.08 5.29
Revenue Estimate 16.12 B 15.23 B 15.08 B 15.27 B
Revenue Actual 16.50 B 16.22 B 15.65 B 15.88 B

Stock Performance

Over the last 52-week period, shares are down 22.4%. Given that these returns are generally negative, long-term shareholders won't be happy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Lockheed Martin is scheduled to hold the call at 11:00:00 ET and can be accessed here.

 

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Posted-In: BZI-EPEarnings