Lockheed misses on Q1 revenue: CEO expects the hit to be temporary

Image for Lockheed Martin Q1 earnings report

Lockheed Martin Corporation (NYSE: LMT) on Tuesday said its quarterly sales came in shy of Street expectations. Profit in the fiscal Q1, however, topped estimates. Shares are down 1.50%.

Notable figures in Lockheed’s Q1 earnings report

  • Net income printed at $1.73 billion versus the year-ago figure of $1.84 billion.
  • Per-share earnings stood at $6.44, a decline from last year’s $6.56.
  • Sales sunk 8.0% YoY in Q1 to $14.96 billion, as per the earnings press release.
  • FactSet consensus was for $6.11 of EPS on $15.58 billion in sales.
  • Aeronautics sales were up 0.2% and missed FactSet consensus by $100 million.

Sales from missiles and fire control, rotary and mission systems, and Space segments fell 10.8%, 13.5%, and 15.1%, respectively – all below expectations. On CNBC’s “The Exchange”, CEO Jim Taiclet said:

We had a solid start to the first quarter of 2022. Margins and cash flow is higher than expected. Revenue is a little light because of the COVID impact. But it’s a period issue for us. We think we can make it all up by the end of the year.

Guidance for the full financial year

Lockheed affirmed its guidance for the full financial year on Tuesday at roughly $26.70 of per-share earnings on $66 billion in sales. This compares to analysts at $26.42 of EPS and $66.12 billion in sales.

CEO Taiclet does expect stronger demand for Lockheed products due to the Ukraine war but says the impact is unlikely to materialise this year. He noted:

Even if we were to get orders this year, we’ll have to ramp up our supply chain and add some capacity. And then deliveries happen six, twelve, eighteen months down the road. So, there should be some uplift, but we don’t have it wired into our 2022 guidance.

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Source: https://invezz.com/news/2022/04/19/lockheed-misses-on-q1-revenue-ceo-expects-the-hit-to-be-temporary/