Lockheed Martin (NYSE: LMT) earnings release for the 1st quarter of their 2022 fiscal year
Category: Lockheed Martin (LMT)
Date: 20 April 2022 Stock Price of Lockheed Martin (LMT): $459.90 Market Capital of Lockheed Martin: $122.6 billion Should you buy Lockheed Martin (LMT) stock? Read our article below to find out.
We take a look at the 1st quarter earnings report of their 2022 fiscal year of Lockheed Martin, a global security and aerospace company that employs almost 105 000 people worldwide. For the quarter the group reported net sales of $15 billion and net sales of $1.7 billion. |
About Lockheed Martin
Headquartered in Bethesda, Maryland, Lockheed Martin Corporation is a global security and aerospace company that employs approximately 105,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services.
Lockheed weapon systems
Lockheed Martin has a long history of successfully providing its customers with missile and missile systems that are affordable, proven, and in production. Our reputation is backed by a record of exceptional contractual performance and successful partnerships, in both the U.S. and international defense communities.
Lockheed Martin is supporting the warfighter by providing a wide variety of highly effective and reliable weapons systems to ensure that the right weapon is available for each situation that they may face. These weapon systems include precision strike weapons with long standoff ranges to keep pilots and aircraft out of harm's way. Lockheed Martin systems also include smart submunitions to give the warfighter maximum flexibility as well as fire support mobile artillery and guided munitions to dominate the battlefield.
Other Lockheed Martin systems include air-to-air missiles to give pilots air supremacy; helicopter launched anti-armor missiles to destroy enemy tanks and other armored vehicles; man-portable short-range anti-armor and assault weapons; kinetic energy hyper-velocity missiles that can defeat all current and future armored threats, hit-to-kill air defense systems that protect the troops from ballistic missiles, cruise missiles, enemy aircraft and weapons of mass destruction. Lockheed Martin-developed strategic missile systems include intercontinental-range ballistic missiles and reentry systems that serve as strategic deterrents.
Lockheed weapon systems
Lockheed Martin has a long history of successfully providing its customers with missile and missile systems that are affordable, proven, and in production. Our reputation is backed by a record of exceptional contractual performance and successful partnerships, in both the U.S. and international defense communities.
Lockheed Martin is supporting the warfighter by providing a wide variety of highly effective and reliable weapons systems to ensure that the right weapon is available for each situation that they may face. These weapon systems include precision strike weapons with long standoff ranges to keep pilots and aircraft out of harm's way. Lockheed Martin systems also include smart submunitions to give the warfighter maximum flexibility as well as fire support mobile artillery and guided munitions to dominate the battlefield.
Other Lockheed Martin systems include air-to-air missiles to give pilots air supremacy; helicopter launched anti-armor missiles to destroy enemy tanks and other armored vehicles; man-portable short-range anti-armor and assault weapons; kinetic energy hyper-velocity missiles that can defeat all current and future armored threats, hit-to-kill air defense systems that protect the troops from ballistic missiles, cruise missiles, enemy aircraft and weapons of mass destruction. Lockheed Martin-developed strategic missile systems include intercontinental-range ballistic missiles and reentry systems that serve as strategic deterrents.
Overview of Lockheed Martin's 1st quarter 2022 earnings report
- Net sales of $15.0 billion
- Net earnings of $1.7 billion, or $6.44 per share
- Cash from operations of $1.4 billion and free cash flow of $1.1 billion
- Returned $2.8 billion of cash to shareholders through share repurchases and dividends
- Reaffirms 2022 financial outlook
Lockheed Martin's management commentary on their 1st quarter 2022 earnings
BETHESDA, Md., April 19, 2022 /PRNewswire/ -- Lockheed Martin Corporation [NYSE: LMT] today reported first quarter 2022 net sales of $15.0 billion, compared to $16.3 billion in the first quarter of 2021. Net earnings in the first quarter of 2022 were $1.7 billion, or $6.44 per share, compared to $1.8 billion, or $6.56 per share, in the first quarter of 2021. Cash from operations was $1.4 billion in the first quarter of 2022, compared to $1.7 billion in the first quarter of 2021. Free cash flow was $1.1 billion in the first quarter of 2022, compared to $1.5 billion in the first quarter of 2021.
"Lockheed Martin had a solid start to the year by delivering margin expansion and free cash flow above our expectations despite recent Covid-surge impacts on our operations and supply chain. We remain confident in our guidance for the remainder of the year and our growth outlook beyond," said Lockheed Martin Chairman, President and CEO James Taiclet. "Global events this quarter marked a dramatic change in the geopolitical environment and demonstrated the tremendous importance of an effective deterrent to aggression by major nation-states, and mutual defense among the United States and its allies. The men and women of Lockheed Martin are fully dedicated to enhancing this deterrence capability by effectively delivering on our existing platform programs and systems, while accelerating the integration of digital world technologies to enable true Joint All Domain Operations for our customers."
Cash Flows and Capital Deployment Activities Cash from operations in the first quarter of 2022 was $1.4 billion. Capital expenditures were $268 million, resulting in free cash flow of $1.1 billion. The decreases in operating and free cash flows from the first quarter of 2021 were primarily due to lower segment operating profit and changes in working capital due to timing. The company's capital deployment activities in the first quarter of 2022 included the following: paying cash dividends of $767 million; and paying $2.0 billion to repurchase 4.7 million shares (including 0.6 million shares received upon settlement of an accelerated share repurchase agreement (ASR) in April 2022).
Lockheed Martin (NYSE: LMT) stock price history
The image below shows the stock price history of Lockheed Martin over the last 5 years. And it's been a good time for Lockheed Martin stockholders. Over the last 5 years the stock of Lockheed provided a very strong return of 68.9% provided to Lockheed Martin stockholders over the last 5 years.
The stock of Lockheed Martin is trading at a lot closer to its 52 week high than it is to its 52 week low which to us is an indication that the momentum and sentiment of Lockheed Martin stock is very positive at this point in time.
The stock of Lockheed Martin is trading at a lot closer to its 52 week high than it is to its 52 week low which to us is an indication that the momentum and sentiment of Lockheed Martin stock is very positive at this point in time.
Lockheed Martin (NYSE: LMT) latest stock valuation
So what is Lockheed Martin stock worth based on the release of their latest earnings report and their outlook provided? Based on Lockheed Martin latest earnings report our valuation models provide a target (full value) price for Lockheed Martin stock at $381.80 a stock. We therefore believe that the stock of Lockheed Martin is overvalued at its current price of $459.90
We usually suggest that long term and fundamental investors get in at least 10% below our target (full value) price which in this case is $381.80. Therefore we believe a good entry point into Lockheed Martin stock is at $342.90 or below. We expect the stock of Lockheed Martin to pull back from current levels in coming weeks and months to levels closer to our target price (full value price) as we cannot see the group holding on to its current lofty valuation levels.
We usually suggest that long term and fundamental investors get in at least 10% below our target (full value) price which in this case is $381.80. Therefore we believe a good entry point into Lockheed Martin stock is at $342.90 or below. We expect the stock of Lockheed Martin to pull back from current levels in coming weeks and months to levels closer to our target price (full value price) as we cannot see the group holding on to its current lofty valuation levels.
Next earnings release date for Lockheed Martin
It is expected that Lockheed Martin (NYSE: LMT) will release their 2nd quarter 2022 earnings towards the end of July 2022