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Defense giant Lockheed Martin (LMT) has a chance to win investors back over on Thursday. The company reports third-quarter financial results before market close, and shares are down more than 20% from the all-time highs they set back in March. That is a pretty big gap between where the stock has been and where it is now, and the earnings call could be the moment that closes it.
Here is what to expect, what analysts are saying, and what to watch.
Analysts expect Lockheed Martin to report third-quarter revenue of $20.49 billion, up from $18.61 billion in last year’s third quarter, according to data from MarketDash Pro.
The company has beaten analyst estimates for revenue in six of the last 10 quarters, including the most recently reported second quarter.
If the estimate holds, it would mark the highest revenue quarter for Lockheed Martin, surpassing the $20.32 billion reported in the fourth quarter.
On the bottom line, analysts expect third-quarter earnings per share of $7.43, up from $6.95 in last year’s third quarter.
Lockheed has beaten analyst estimates for earnings per share in nine of the past 10 quarters overall, including in the most recently reported second quarter.
Analysts have been lowering their price targets on Lockheed Martin ahead of the earnings report. Here are some of the latest ratings and price targets:
RBC Capital: Maintained Sector Perform rating, lowered price target from $600 to $550
Bernstein: Maintained Market Perform rating, lowered price target from $629 to $564
TD Cowen: Maintained Hold rating, lowered price target from $600 to $570
Barclays: Initiated with Equal-Weight rating, with a price target of $554
The latest earnings report from Lockheed Martin could be one of the most anticipated given the recent success in the second quarter and a share price that has fallen since earlier this year.
Shares hit an all-time high of $692 back in March and are now down over 20% from that level.
The second quarter saw a double beat and marked the first beat for earnings per share and revenue in multiple quarters, showing strength for both key financial metrics.
The company also raised guidance and reported strong backlog alongside its second-quarter results.
Lockheed showed growth across all four of its key business segments, which will be a key area for investors and analysts to watch on Thursday. The Missiles and Fire Control segment saw the largest year-over-year growth in the second quarter at 19%.
The company previously said it sees higher demand from the U.S. and allied nations for all four of its business segments.
New orders were $65 billion in the second quarter, which helped the company’s backlog hit a record $230.416 billion.
After posting a record backlog and raising guidance, expectations could be high for the financials and stock heading into Thursday.
Investors and analysts will likely want to see strong order figures for the quarter and potentially another record backlog figure with defense spending expected to continue rising for the United States military.
Lockheed Martin is one of the many ways investors can get exposure to increased military spending.
While analysts have been cutting their price targets, a strong report and updated guidance from Lockheed Martin could see the share rally higher, which may lead to some bullish reversals from the experts.
Lockheed Martin stock trades at $549.72 on Wednesday versus a 52-week trading range of $437.25 to $692. Shares are up 10.7% year-to-date.
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