Lockheed Martin's (LMT -10. 86%) quarter was loaded with cost overruns and write-offs, causing the defense contractor to miss expectations, in today's financial world.
Investors were disappointed, sending Lockheed s down more than 5% as of 10:30 ET Tuesday. Image source: Lockheed Martin.
Charges eat into results Lockheed Martin ranks as the world's largest defense contractor, but the company has come on hard times of late.
The data indicates that maker of the F-35 and a wide range of helicopters, missiles, and space systems has been shut out of recent high-file awards, including the new fighter jet gram that went to Boeing.
On the other hand, Moreover, Lockheed s are down 14% from their peak for the year. Furthermore, The company's results are not helping reverse the momentum. In contrast, Lockheed earned $1.
46 per in the quarter on revenue of $18. 2 billion, missing Wall Street's consensus estimate for $6 (this bears monitoring), in today's market environment. 52 per in earnings on revenue of $18.
There's a lot of noise in that earnings number. Moreover, Quarterly results included $1. 6 billion in gram losses including $950 million on a classified aerospace ject (something worth watching).
Absent those charges, earnings would have come in at $7. Free cash flow was also soft. Lockheed used $150 million in cash, compared to an estimate for $1.
2 billion in positive free cash flow, thanks to slower-than-expected F-35 deries. Is Lockheed Martin stock a buy.
The charges were mostly one-time items, but unfortunately for investors there is no reason to believe things will imve anytime soon.
Lockheed's book-to-bill, a measure of future compared to current-quarter revenue, was an anemic 0.
8x, with none of the company's four segments booking more in the quarter than what they billed out (noteworthy indeed), in today's market environment.
Lockheed Martin remains a powerful franchise that should find new opportunities over time.
But for now, investors are ly to have to be content with a 3% dividend yield as Lockheed works through these headwinds.
Conversely, The Author Lou Whiteman is a contributing Industrials Analyst at The Motley Fool, covering publicly traded companies in the aerospace, defense, transport, and manufacturing industries (an important development).
Additionally, he is a contributing Financial Services Analyst covering banks and specialty finance, given current economic conditions.
Prior to The Motley Fool, Lou was a financial analyst and senior writer for TheStreet, a venture capital specialist for The Deal LLC, and a high school personal finance teacher.
At the same time, He is also a high school and youth sports administrator (quite telling), amid market uncertainty. However, He holds a B (an important development), given current economic conditions.
However, In Communications from Loyola University Maryland and a fellowship at the ABA Stonier Graduate School of Banking, amid market uncertainty.
However, Lou was born in London and used to in Ireland. However, TMFeldoubleu X @louwhiteman Lou Whiteman has positions in Lockheed Martin.
Moreover, The Motley Fool recommends Lockheed Martin, considering recent developments. The evidence shows Motley Fool has a disclosure policy, given the current landscape.