MOG.B

Lockheed Martin Facing Near Term Headwinds; Longer Term Outlook Remains Bright

by

Image Source: Lockheed Martin Corporation – Second Quarter of Fiscal 2022 IR Earnings Presentation By Callum Turcan Lockheed Martin Corporation (LMT) reported earnings for the second quarter of fiscal 2022 (period ended June 26, 2022) that missed consensus top- and bottom-line estimates, largely due to delays in securing another domestic F-35 contract and supply chain hurdles. In our view, these are near term headwinds that are resolvable. Reportedly, Lockheed Martin is nearing a deal worth ~$30 billion with the US Department of Defense (‘DoD’) covering orders for around 375 F-35 aircraft. As it concerns supply chain hurdles, the resumption of normal economic activities (as the worst of the COVID-19 pandemic is put behind the world economy) should steadily allow industrial … Read more

Lockheed Martin On the Road to Recovery, Improved Free Cash Flow Visibility

by

  Image: Heath Cajandig By Brian Nelson, CFA It was late October 2021 when Lockheed Martin (LMT) took a “big bath” of a third quarter. Back then, Lockheed Martin said it expected 2022 net sales to fall from 2021 levels, to ~$66 billion. At the time, we had been expecting revenue to advance to north of $70 billion during 2022, so the change in trajectory was quite pronounced. Its backlog fell to $134.8 billion from $147.1 billion on a year-over-year basis in the quarter, too. To say that the market was surprised in October would be an understatement because LMT’s stock fell double-digits following the news. Fast forward a few months, and Lockheed Martin is working to get things back … Read more

Lockheed Makes an Intriguing Acquisition

by

Image Source: Lockheed Martin Corporation – December 2020 IR Presentation covering Lockheed Martin Corporation’s pending acquisition of Aerojet Rocketdyne Holdings Inc By Callum Turcan On December 20, Lockheed Martin Corporation (LMT) announced it was acquiring Aerojet Rocketdyne Holdings Inc (AJRD) for $56.00 per share in cash, or $51.00 per share after taking into account a special $5.00 per share pre-closing cash dividend payment that Aerojet Rocketdyne plans to pay out. The deal has a total equity value of ~$5 billion when including the special dividend component and is expected to close in the second half of 2021. In our view, this deal is highly complementary to Lockheed Martin’s existing operations. Combining Aerojet Rocketdyne’s propulsion and power systems business segments with … Read more