TLDR
- Lockheed Martin reported Q3 earnings of $6.95 per share, beating analyst estimates of $6.33 per share by 9.79%
- Revenue came in at $18.61 billion for the quarter, surpassing expectations and up from $17.1 billion year-over-year
- The company raised its quarterly dividend to $3.45 per share from $3.30, representing a 4.5% increase
- Full-year 2025 EPS guidance of $22.15-$22.35 came in below consensus estimates of $24.18
- Shares have gained 4.1% year-to-date, underperforming the S&P 500’s 14.5% rise
Lockheed Martin delivered another quarter of better-than-expected results. But investors might not be celebrating just yet.
The aerospace and defense contractor posted third-quarter earnings of $6.95 per share. That beat Wall Street’s consensus estimate of $6.33 per share by nearly 10%.
This marks the fourth straight quarter Lockheed has topped earnings expectations. The company earned $6.84 per share in the same quarter last year.
Lockheed Martin Corporation, LMT
Revenue for the quarter reached $18.61 billion. That’s up from $17.1 billion in the year-ago period.
The revenue figure also beat analyst projections, though by a smaller margin of 0.28%. Over the past four quarters, Lockheed has exceeded revenue estimates twice.
Mixed Signals on Performance
The strong quarterly results contrast with the company’s stock performance this year. Shares have climbed just 4.1% since January.
That trails the S&P 500’s gain of 14.5% over the same period. The stock opened at $505.20 on Tuesday.
Lockheed’s return on equity stood at 107.60% for the quarter. Net margin came in at 5.85%.
The company operates with a debt-to-equity ratio of 3.47. Its current ratio sits at 0.98, while the quick ratio is 0.83.
The stock trades at a price-to-earnings ratio of 28.45. Market capitalization stands at $117.94 billion.
Lockheed’s 52-week range shows considerable volatility. The stock hit a low of $410.11 and a high of $618.95.
Guidance Disappoints Despite Strong Quarter
The company issued full-year 2025 earnings guidance that fell short of expectations. Management projects EPS between $22.15 and $22.35.
That’s well below the consensus estimate of $24.18. Revenue guidance came in at $74.3 billion to $74.8 billion, matching analyst expectations.
For the coming quarter, analysts expect earnings of $6.88 per share on revenue of $19.54 billion. The current fiscal year consensus sits at $21.86 per share on $74.2 billion in revenue.
Lockheed also announced a dividend increase. The quarterly payout will rise to $3.45 per share from $3.30.
The new dividend represents an annualized payment of $13.80. That translates to a yield of 2.7%.
The ex-dividend date is set for December 1st. Payment will be made on December 30th.
Wall Street analysts maintain a generally cautious stance. Susquehanna raised its price target from $490 to $590 with a positive rating.
Goldman Sachs lifted its target from $398 to $425 but kept a sell rating. Robert W. Baird increased its target from $500 to $550 with an outperform rating.
Based on current ratings, Lockheed has one strong buy, six buys, fifteen holds, and one sell. The average price target among analysts is $515.35.
The company currently holds a Zacks Rank of 3, indicating a hold rating. The Aerospace-Defense industry ranks in the bottom 37% of Zacks-rated industries.
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