Martin Corporation (NYSE: LMT) topped expectations for Q3 results
Lockheed Martin earnings declined 1.5% to
$6.77 per share adjusted on 2% revenue growth to $16.9 billion.
Analysts expected Lockheed earnings to
decline 2.9% to $6.67 per share on a 0.9% revenue uptick to $16.73 billion.
total backlog rose to $156 billion as of September 2023 from $149.99 billion in
December 2022. The company saw an increase in orders across every business
segment except for aeronautics.
For the 2023
fiscal year, Lockheed Martin guided up to 25.6% earnings growth to range from
$27 and $27.20 per share. The company expects 2023 sales between $66.25 billion
and $66.75 billion, up to a 1.3% increase from last year.
full-year earnings of $27.16 per share on $66.68 billion in revenue is forecast.
Martin averaged 4.5% earnings growth the past four quarters leading up to
Tuesday's results while revenue averaged 4.75% gains during the period.
LMT stock has popped back above its 10-week
moving average, after diving below that line of technical support in July.
LMT stock fell 9.3% so far in 2023.
Why the LMT Weekly
Options Trade was Originally Executed!
conflicts in Europe and the Middle East make clear the vital need for strong
defensive capabilities. Lockheed Martin Corporation (NYSE: LMT) helps
the U.S. and its allies protect themselves from a growing list of threats.
are fresh tensions once again erupting in the Middle East, owing to the ongoing
violence between Palestine’s Hamas group and Israeli militants that took
thousands of lives over the past couple of days. The conflict started with
Hamas launching sudden missile attacks on the southern Israeli city of
Ashkelon, to which Israel’s military responded with multiple airstrikes on Gaza
unprecedented assault by Hamas and the retaliatory strikes from Israel are
poised to be beneficial for U.S. defense stocks, especially those that are
notable weapons suppliers to Israel. Evidently, the Dow Jones U.S. Aerospace
& Defense Index surged a solid 6.7%, following the outbreak of the latest
Israel-Hamas conflict. This, in turn, puts the spotlight on major weapon
manufacturers such as Lockheed Martin Corporation.
The LMT Weekly
Options Trade Explained.....
** OPTION TRADE: Buy LMT OCT 27 2023 450.000 CALLS - price at last close was $6.90 - adjust accordingly.
Obviously the results will vary from trader to trader
depending on entry cost and exit price that was undertaken.
Entered the LMT Weekly Options (CALL) Trade on Monday, October 16, 2023, for $4.57.
Sold the LMT weekly options contracts on Tuesday, October 17, 2023 for $8.70; a potential profit of90%.
Don’t miss out on further trades – become a
Martin Corporation was formed in 1995 by the merger of Lockheed Corporation and
Martin Marietta. The company is headquartered in Bethesda, Maryland, and is the
No. 1 U.S. defense contractor by revenue and market cap. It is the world’s
third-largest aerospace company, with 75% of its business in the defense
market. Ten percent of Pentagon spending goes to Lockheed Martin, and 50% of
its annual revenue comes from the Department of Defense. In 2020, it was the
No. 1 recipient of Pentagon spending, at $72.9 billion, more than three times
the money spent on the No. 2 U.S. defense player and more than all spent on the
second through fourth positions.
Martin Corporation’s roots date back to the Loughead (pronounced Lockheed)
Aircraft Manufacturing Company, founded by the Loughead brothers in 1912. By
1920, the first venture had gone bankrupt due to a decline in post-WWI demand,
but it restarted in 1926. Investors, including John Northrop of Northrop
Grumman Corporation, raised the money to start the Lockheed Aircraft
Manufacturing Company. They used technology developed from 1912 to 1920 to
produce the Vega, a cutting-edge passenger plane that could seat up to seven
By 1928, the
company made about five planes a week and brought in more than $1 million per
year. The Depression cut the bottom out of the aircraft market, and the company
fell on hard times. By this point, the founders were out of the business and
failed to make a bid to repurchase the company when it fell into receivership.
Among the many early successes were the Vega and the Model 10 Electra, both
flown by Amelia Earhart, the latter to her end.
Lockheed Aircraft Corporation expanded its aircraft lines into World War II,
including plans for potential defense aircraft. This planning had the company
in an excellent position to win defense contracts when the U.S. entered World
War II and helped launch it to its current status. It was also when the company
launched the advanced development projects, which came to be called Skunk
Works. Skunk Works is responsible for many advances in military technology,
including the first kill recorded in jet-to-jet combat. Cold War advances
include the C-130, the Polaris Submarine-Launched Ballistic Missile System and
the iconic SR-71 Blackbird.
Marietta was formed in 1961 by the merger of Glenn L. Martin Company and
American Marietta Corporation. The company was an aerospace-focused
manufacturer specializing in missiles and missile systems. Projects accredited
to it include the Titan and Pershing Missile Systems and the MGM-51 Shillelagh
Anti-Tank Guided Missile System.
Lockheed Martin Corporation operates as a security and aerospace company
worldwide. It researches, designs, develops and manufactures defense and
security systems for government and private use. The company operates in four
segments: aeronautics, missiles and fire control, rotary and mission systems
and space. The company’s other projects include health, renewable energy,
energy distribution and nuclear fusion research and development.
Further Catalysts for the LMT Weekly Options Trade…..
produces the F-35 stealth fighter jet, which serves a crucial role in the
national security strategies of the U.S. military and 17 allied nations. The
company's diverse product portfolio also includes satellites, helicopters,
cargo planes, and a wide array of other defensive systems.
clinched a contract involving MH-60R helicopters. Valued at $379.6 million, the
deal has been awarded by the Naval Air Systems Command, Patuxent River, MD.
deal, LMT will manufacture and deliver eight MH-60R helicopters for the
government of Spain. The contract is expected to be completed by March 2027.
The majority of the work related to this deal will be carried out in Owego, NY,
and Stratford, CT.
reinforcing their military capabilities to strengthen their defense structure
in the growing threat environment. In this context, military helicopters that
play a critical role in military missions have also witnessed a significant
rise in demand.
augmented demand tends to benefit LMT as the company boasts an impressive
portfolio of military helicopters like MH-60R, Black Hawk, Seahawk and CH-53K
King Stallion heavy-lift helicopters and a few more.
enjoys strong demand for its fleet of combat-proven helicopters, which
continues to attract customers and results in a significant order inflow for
the company, like the latest one. This tends to boost Lockheed’s revenue
The military rotorcraft market is likely to witness a CAGR of more than
4% during the 2022-2027 period. Such a forecast suggests significant prospects
for Lockheed to capitalize on growth in the military helicopter market, given
its established position in this segment.
LMT offers its C-130 and F-16 aircraft to Israel that the Israel Air
Force has been using since the 1970s and 1980s, respectively. Israel is the
owner of the largest fleet of F-16 fighters outside the United States.
In light of the current situation, LMT’s shares have risen 8.6% since Oct
6, following Hamas’ latest strike on Israel. To tackle the ongoing violence in
Southern Israel, U.S. Secretary of Defense Lloyd Austin recently ordered more
of Lockheed-built F-35 and F-16 fighter aircraft to squadrons in the region.
initiated coverage of Lockheed Martin with a Neutral rating and $470
price target. The firm sees low-single digit budget growth, with the 25%
trailing two-year investment increase yet to flow through to revenue.
to the issued ratings of 16 analysts in the last year, the consensus rating for
Lockheed Martin stock is Hold based on the current 1 sell rating, 10 hold
ratings and 5 buy ratings for LMT. The average twelve-month price prediction
for Lockheed Martin is $489.19 with a high price target of $555.00 and a low
price target of $332.00.
Lockheed has a bountiful free cash flow --
including $6.1 billion in 2022 -- Lockheed has provided a steadily growing
stream of dividend income to its shareholders. The company's stock buybacks
also help to support a rising share price.
Investors can expect more dividend increases
in the years ahead. Lockheed's order backlog grew to a whopping $158 billion by
the end of the second quarter. This gives the defense giant excellent
visibility into its future cash flow, a large portion of which it probably will
pass on to shareholders.
Lockheed Martin has a quick ratio of
1.16, a current ratio of 1.36 and a debt-to-equity ratio of 1.87. Lockheed
Martin has a 12-month low of $388.10 and a 12-month high of $508.10. The firm
has a 50 day moving average price of $432.74 and a two-hundred day moving
average price of $452.24. The company has a market capitalization of $111.07
billion, a PE ratio of 16.13, and a price-to-earnings-growth ratio of 1.92 and
a beta of 0.67.