Defense stock earnings are on tap as the U.S. and its allies turn a wary eye toward Russia mobilizing near Ukraine. Lockheed Martin (LMT) will report fourth-quarter results early Tuesday with General Dynamics (GD) expected Wednesday and Northrop Grumman (NOC) scheduled for early Thursday.
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Defense Stocks: Lockheed Earnings
Estimates: Analysts polled by FactSet see Lockheed earnings climbing 12% to $7.16 per share with revenue up 4% to $17.66 billion.
The F-35 joint strike fighter is Lockheed’s biggest moneymaker. Last month, the Finnish Air Force announced it will buy 64 F-35A stealth fighters to replace its aging Boeing F/A-18 Hornets. The deal comes as tensions with Russia rise.
In general, defense contractors faced supply chain issues in recent quarters. But Lockheed was able to deliver 142 F-35s in 2021, beating its target by three jets.
While the aeronautics unit is Lockheed’s largest revenue-wise, missiles have been a growing revenue stream for Lockheed in recent quarters. The company sees hypersonic weapon sales hitting $3 billion by 2025. That’s up from $1 billion in 2020 and $600 million in 2019. The company has six hypersonic weapons programs and CEO Jim Taiclet told analysts last quarter that he expects “multiple” programs starting production between 2023 and 2026.
GE Stock Falls Ahead Of Earnings; Raytheon, Textron Also On Tap
Results: Check back before the market opens Tuesday.
Stock: Shares edged up 0.6% to 373.33 on the stock market today. LMT stock is in consolidation with a 397.09 entry point.
Defense stocks usually rally during geopolitical crises but were broadly down Monday as the Biden administration is considering sending several thousand troops to Europe. Washington will also allow Estonia, Lithuania and Latvia to send American-made weapons to Ukraine amid a ramp-up of Russian troops near Ukraine’s border.
General Dynamics Earnings
Estimates: General Dynamics earnings per share are seen falling 10% to $5.96. Revenue is expected to decline by 12% to $9 billion.
Results: Check back before trading starts on Wednesday.
Stock: Shares edged up 0.3% to 207.08. GD stock has fallen back after clearing a cup-with-handle buy point of 209.18 at the start of the year.
The RS line for General Dynamics stock is at a 52-week high.
Boeing (BA) will also report Q4 results before the market opens Wednesday.
Northrop Earnings
Estimates: Northrop earnings per share are expected to fall 3.4% to $3.37. But revenue is seen rising nearly 2% to $10.67 billion.
Northrop is building the B-21 bomber for the Air Force. But information about the aircraft’s cost remains classified. It is also investing in hypersonic weapons projects as well as hypersonic defense systems.
NASA announced Monday that Northrop’s James Webb Space Telescope arrived at its observation point a million miles away from Earth. The telescope was launched on Christmas after several years of delays.
Results: Check back before the market opens Thursday.
Stock: Shares climbed 1.1% to 403.06. NOC stock is just below its buy point after forming a cup base with a 408.13 buy point.
Follow Gillian Rich on Twitter for defense news and more.
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Source: https://www.investors.com/news/defense-stocks-lmt-noc-gd-q4-earnings-supply-chain/?src=A00220&yptr=yahoo