Lockheed Martin Clocks Q3 EPS Beat; Announces $14B Stock Buyback, Boosts Dividend

  • Lockheed Martin Corp LMT reported a third-quarter FY22 net sales growth of 3.5% year-over-year to $16.58 billion, slightly missing the consensus of $16.64 billion.
  • Adjusted EPS declined to $6.71, beating the consensus of $6.68.
  • The gross margin contracted by 158 bps to 12.8%. 
  • The operating profit decreased by 5.9% Y/Y to $2.2 billion.
  • Aeronautics sales grew by 8% Y/Y to $7.1 billion, Missiles and Fire Control sales rose by 2% Y/Y to $2.8 billion, and Rotary and Mission Systems sales declined by 5% Y/Y to $3.8 billion.
  • Space net sales increased by 7% Y/Y to $2.9 billion.
  • Lockheed Martin generated $2.7 billion in free cash flow and held $2.4 billion in cash and equivalents.
  • Buyback & Dividend: Lockheed Martin announced an additional $14 billion share repurchase. It also increased the quarterly dividend rate by 7% to $3.00 per share.
  • FY22 Outlook: Lockheed Martin reaffirmed net sales of ~$65.25 billion, marginally below the consensus of $65.29 billion, and EPS of ~$21.55 below the consensus of $21.67.
  • Price Action: LMT shares are trading higher by 0.43% at $399 during the premarket session on Tuesday.
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Posted In: EarningsNewsGuidanceDividendsBuybacksAerospace & DefenseBriefsIndustrials
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