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- 1 Lockheed Martin will announce its Q2 2023 earnings report on July 18, 2023, before the starting bell.
- 2 The current geopolitical scenario and the new F-35 deal could fuel the rally.
Lockheed Martin Corp. (NYSE: LMT) will report earnings on July 18, 2023. The F-35 deal and the geopolitical scenario could cause LMT stock to rally. Before Tuesday morning’s market bell, LMT will report its Q2 earnings. The ongoing scenario between Russia and Ukraine and the Senate’s debate over the U.S. Defense budget could benefit the aerospace & defense company.
Lockheed Martin Corp. (LMT Stock) – Financial Analysis
The maker of F-22 and F-35 fighter jets emerged as a prominent supplier of missiles and other military equipment to Ukraine, aiding its fight against Russia. The Russian evasion has increased the demand for Lockheed’s equipment. Moreover, the United States will now allow its European allies to train Ukrainian pilots on F-16 jets.
Lockheed Martin recently secured a $99.5 million contract for the support, maintenance, production, and delivery of 147 F-35 jets. The Naval Air Systems Command, Patuxent, Maryland, awarded the contract to the company. Interestingly, the F-35 program has been a revenue generator for the company, and this deal should benefit the rally.
Lockheed Martin Technical Analysis
NYSE: LMT at press time is trading at $469.97 with a jump of 1.22%. Its previous close and open were at $464.31 and $466.29, respectively. The 52-week range is from $373.67 to $508.10. With an average volume of 1.23 million shares, the market cap is $119.021 billion.
The trailing twelve-month (ttm) price-to-earnings (P/E) ratio is 21.84, indicating a fairly valued stock price. At the same time, the (ttm) earnings per share (EPS) is $21.82. Analysts placed a 2.20 rating for HOLD and estimated a price target at $494.79 with a 5.3% upside.
Lockheed Martin reported its Q1 earnings on April 18, 2023, where the reported revenue of $15.126 billion surpassed the estimated $15.041 billion by 0.57%. At the same time, the reported earnings of $6.43 per share exceeded the expected value of $6.003 per share by 7.12%. Despite such positive earnings NYSE: LMT fell around 8.49% before recovery.
Q2 earnings reports are due today before the starting bell, where revenue is expected to gain around 3% and reach $15.923 billion. The aerospace and defense company had an average earnings growth of about 4% for the last three quarters, and this time it is expected to reach $6.448 per share.
Operating expenses gained 39.47% to minus $115.00 million, while the (ttm) operating margin swelled by 11.39%. The company expects a free cash flow of $6.2 billion in 2023. Total cash in hand at the end of the most recent quarter (mrq) is $2.44 billion, while the total debt comes at $15.6 billion.
Lockheed Martin Corp. (LMT Stock) – Candle Exploration
LMT’s share price gained 16.41% in a year but fell 2.78% YTD. With earnings coming out today, the price could rally. However, despite previous favorable earnings, the share price dropped noticeably; thus, rally prediction this time may or may not work. If it rallies, the price might enter the selling zone, but momentum shall arrive once the price crosses the $509.00 mark.
If the earnings fail, the price might bounce off the buying zone and consolidate for some time. A flat EMA and the increasing value of RSI at 60.15 provide mixed signals. Overall, a rally can be expected considering the new F-35 deal and the current geopolitical scenario.
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Andrew is a blockchain developer who developed his interest in cryptocurrencies while pursuing his post-graduation major in blockchain development. He is a keen observer of details and shares his passion for writing, along with coding. His backend knowledge about blockchain helps him give a unique perspective to his writing skills, and a reliable craft at explaining the concepts such as blockchain programming, languages and token minting. He also frequently shares technical details and performance indicators of ICOs and IDOs.
