Preview of Lockheed Martin's Quarterly Financial Results: Crucial Insights You Require
Lockheed Martin, the American aerospace, defence, and security company, has seen a slight downward revision in its Q2 2025 earnings expectations. Analysts at Zacks Research now forecast earnings per share (EPS) of $6.56 for Q2 2025, a decrease from their earlier estimate of $6.63 EPS. Despite this adjustment, the company's overall financial health and growth prospects remain robust.
The company's Q1 2025 earnings report, released on Apr. 22, showed a strong earnings beat with EPS of $7.28, exceeding estimates by about 14.8%. This positive performance contributed to a marginal uptick in Lockheed Martin's stock prices.
As of the current context, the LMT stock holds a consensus "Moderate Buy" rating, with a mean price target of $525.50, suggesting a 13.5% upside potential from current price levels. The stock has traded recently between a 12-month low of about $419 and a high near $619, with a current market cap of around $109.7 billion. Key valuation metrics include a price-to-earnings (P/E) ratio of approximately 20.23 and a P/E to growth (PEG) ratio of around 1.67. The stock’s beta is low (0.29), indicating relatively lower volatility compared to the market.
Longer-term projections for Lockheed Martin indicate moderate growth. Earnings and revenue are forecast to grow annually by about 6.9% and 3.5% respectively. EPS growth is expected to be near 9% per annum. Return on equity is projected at about 92.6% in three years, signifying strong profitability and efficiency.
Lockheed Martin is scheduled to release its Q2 2025 earnings on July 22, 2025, with an expected EPS around $6.57, consistent with the downward revisions. For fiscal year 2026, LMT's earnings are expected to rebound 9.1% year-over-year to $29.75 per share. For the fiscal year 2025, LMT's earnings are expected to come in at $27.27 per share, down 4.2% from $28.47 reported in fiscal 2024.
Lockheed Martin operates through four main segments: Aeronautics, Missiles and Fire Control, Rotary and Mission Systems, and Space. The company is known for its fighter aircraft like the F-16 Falcon, F-22 Raptor, and F-35 Lightning. LMT specializes in manufacturing and designing fighter aircraft and missiles.
In terms of dividends, Lockheed Martin returned $1.5 billion to shareholders in the form of dividends and share repurchases. As of the provided context, Lockheed Martin's stock prices have dropped 4.7% on a year-to-date basis. Of the 23 analysts covering the stock, opinions include 11 "Strong Buys," 11 "Holds," and one "Strong Sell."
In summary, while Lockheed Martin's Q2 2025 EPS outlook is slightly weaker than previously expected, the company remains fundamentally strong with expectations of steady growth. The recent earnings beat and stable stock price indicate resilience despite the modest EPS revision.
The recent earnings beat in Q1 2025 has contributed to a marginally positive trend in Lockheed Martin's stock prices, indicating investor confidence despite the slight downward revision in Q2 2025 earnings expectations. The company's overall financial health, marked by robust growth prospects and strong profitability, is likely to influence its stock performance, given that finance plays a significant role in this context.
