Lockheed Martin Corporation (LMT) Backlog Reaches Close To $80.5 Billion

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F-35

F-35

The demand for Lockheed Martin Corporation (NYSE:LMT), one of world’s largest defense contracts remains strong. The company reported  an order backlog of nearly $80.5 billion which bodes well for the future.

Lockheed Martin Corporation (NYSE:LMT)’s Chairman, President and CEO, Marillyn Hewson, commented on the company’s 4th quarter results saying that its performance was the result of solid program execution by their team and strong international business growth and a continued focus on affordability of products and operations.

4Q Results

The company reported net earnings of $904 million for the fourth quarter compared to $488 million representing an uptick of 85.3%. Similarly, earnings surged 88% to $2.82 a share from $1.50 a share in the year-ago quarter. Lockheed Martin generates $3.9 billion in cash from operations after $2.0 billion of pension contributions.

Top line of Lockheed Martin Corporation (NYSE:LMT) witnessed an 8.67% growth to $12.53 billion from $11.53 billion in the previous year quarter. Street analysts’ estimated the company to earn $2.85 a share on revenue of $11.89 billion.

Revenue from Aeronautics grew 6.1% to $4.14 billion whereas revenue from Information Systems & Global Solutions fell 5.4% to $1.99 billion. Other business segments, Missiles and Fire Control, Mission Systems and Training and Space Systems recorded a growth of 16.9%, 11.5%, and 18.8% respectively. In terms of value, they managed to get $2.01 billion, $2.07 billion, and $2.32 billion respectively.

Operating margin in Aeronautics advanced ten basis points to 10.7% while it dipped 20 basis points in Information Systems and Global solutions division. A steep drop of 4.4 percentage points was witnessed in Missiles and Fire Control at 15.9%. Similarly, Mission Systems and Training segment recorded 90 basis fall in operating margin to 10.4% while Space Systems’ operating margin dipped to 11.0% from 13.0%.

Outlook

Going forward, Lockheed Martin Corporation (NYSE:LMT) expects to generate revenue of $43.5 – $45.0 billion in the current calendar year of 2015. The company expects to earn $10.8 – $11.10 a share for the same period. Both earnings and revenue fell short of the Street analysts’ expectations of $11.49 a share and $44.26 billion respectively.

Viraj Shah

Viraj Shah has completed M.Com (Finance) and is currently pursuing his CFP. He tracks US markets along with other global markets like India very closely. He is very passionate about stocks, real estate, and technology. He also believes that money can always be made in the market.

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