Lockheed Martin Reports Q1 Earnings Beat, But Margin Concerns Remain: Analysts Dive Into Results, Outlook
Portfolio Pulse from Priya Nigam
Lockheed Martin Corp (NYSE:LMT) reported Q1 earnings and revenues that exceeded expectations, with earnings per share at $6.33 against a consensus of $5.82 and revenues up by 7%. Despite the beat, concerns over margins persist, particularly due to a loss on a classified missile program and potential pressure from Pentagon's risk-sharing initiatives. Goldman Sachs maintains a Sell rating but slightly raised the price target from $377 to $378. Truist Securities highlighted a 5% year-on-year normalized revenue growth and reaffirmed 2024 guidance, noting potential for upside but expecting a deceleration in growth. LMT shares slightly declined by 0.0065% to $460.05.

April 24, 2024 | 6:53 pm
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Lockheed Martin exceeded Q1 earnings and revenue expectations but faces margin concerns and a loss on a classified missile program. Goldman Sachs maintains a Sell rating with a minor price target increase, while Truist Securities notes potential for upside in 2024 guidance.
Despite the positive earnings and revenue beat, the concerns regarding margins and the specific loss on a classified missile program could temper investor enthusiasm. The slight price target increase by Goldman Sachs and the reaffirmed 2024 guidance by Truist Securities suggest a neutral to slightly positive outlook, balanced by the underlying issues.
CONFIDENCE 85
IMPORTANCE 90
RELEVANCE 100