When Lockheed Martin Corp. (NYSE: LMT) reported fourth-quarter and full-year 2018 results before markets opened Tuesday morning, the world’s largest defense company posted diluted earnings per share (EPS) from continuing operations of $2.39 on revenues of $14.4 billion for the quarter. In the same period a year ago, the company reported a net loss of $85 per share on revenues of $13.8 billion. The net loss last year was the primarily due to the tax reform bill and was a non-cash loss. The latest quarterly results also compare to the consensus estimates for EPS of $4.40 and $13.75 billion in revenues.
For the full year, the company posted EPS of $17.59 on revenues of $53.8 billion, compared with year-ago EPS of $6.50 and revenues of $50 billion. Analysts were looking for EPS of $17.59 and revenues of $53.11 billion.
Cash flow from operations totaled $2.2 billion in the quarter, up from $1.5 billion in the fourth quarter of 2017. For the year, cash flow from operations totaled $3.1 billion after annual pension contributions of $5 billion. In 2017, cash flow totaled $6.5 billion with no pension contributions.
CEO Marillyn Hewitt commented:
As we look ahead to 2019, we remain focused on performing with excellence for customers, and our record backlog and differentiating portfolio have us well-positioned for continued growth and long-term value creation for shareholders.
Lockheed’s outlook for 2019 calls for revenues in the range of $55.75 to $57.25 billion and diluted EPS of $19.15 to $19.45. Analysts had forecast EPS of $19.55 and revenues of $56.23 billion. The company forecasts cash flow from operations of at least $7.4 billion and a pension benefit of about $1.5 billion.
The company repurchased 4.7 million shares of its stock, valued at $1.8 billion, during 2018 and paid dividends totaling $2.2 billion.
Investors’ reaction to the report was positive if not enthusiastic. Quarterly earnings were only a penny short and full-year EPS came in as expected. Revenues beat expectations on both measures, but Lockheed’s EPS outlook was light, never a good signal to investors.
The somewhat mixed results have pushed the stock up about 1.5% in the late morning to $292.30, in a 52-week range of $241.18 to $363.00. The consensus 12-month price target on the stock is $343.37.
Get Ready To Retire (Sponsored)
Start by taking a quick retirement quiz from SmartAsset that will match you with up to 3 financial advisors that serve your area and beyond in 5 minutes, or less.
Each advisor has been vetted by SmartAsset and is held to a fiduciary standard to act in your best interests.
Here’s how it works:
1. Answer SmartAsset advisor match quiz
2. Review your pre-screened matches at your leisure. Check out the advisors’ profiles.
3. Speak with advisors at no cost to you. Have an introductory call on the phone or introduction in person and choose whom to work with in the future
Get started right here.
Thank you for reading! Have some feedback for us?
Contact the 24/7 Wall St. editorial team.