After seeing a strong rally in March, Lockheed Martin (NYSE: LMT) shares held their value, primarily due to cash flow driven by multi-year government contracts. Despite the pandemic, the company has been returning cash to shareholders as dividends and share buybacks. Revenues in the second quarter may experience growth of 5% (YoY), mainly driven by the aerospace and defense sectors. Furthermore, net profit is also expected to increase 15% (YoY). We highlight quarterly trends in revenue, earnings, and valuation multiples in our interactive dashboard analysis of Lockheed Martin’s earnings preview.
How did Lockheed Martin perform in the fourth quarter?
In the first quarter, Lockheed Martin reported net sales growth of 4% (year-over-year) and profit growth of 7% (year-over-year). The company’s four operating divisions, Aviation, Missiles, Rotary Systems and Space, have seen revenue growth of 1%, 5%, 10% and 3% (year-over-year) respectively. It is worth noting that the aviation and missile sectors together contributed 64% of total revenue and about 60% of total backorders. In recent years, the companys aviation and missile divisions have continued to be the main revenue and profit drivers. According to first-quarter documents, the total order book was $ 147 billion.
Share price
TREFIS share price
Shares selected due to favorable dividend yield
Considering the quarterly dividend payable of US $ 2.60 per share and the share price of US $ 380, the current dividend yield is 2.7% ((2.60 * 4) / 380). Therefore, the stock is a good option for investors looking for stable returns. In addition, the current price-to-earnings ratio is also lower than in previous years, indicating that there is room for long-term gains.
Is there a better option than Lockheed Martin in the defense contracting business? Comparing Lockheed Marins shares to its peers summarizes how LMT compares to its peers on important indicators. You can find more useful comparisons in the peer comparison.

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