BofA update shows where active managers are putting money
On Wednesday, Bernstein analysts from SocGen Group maintained their Market Perform rating and $533.00 price target on Lockheed Martin (NYSE:LMT). The defense contractor’s first-quarter earnings per share (EPS) of $7.28 exceeded both the consensus estimate of $6.31 and Bernstein’s own projection of $6.42. Lockheed Martin’s sales reached $17.96 billion, surpassing the consensus forecast of $17.78 billion and aligning closely with Bernstein’s estimate of $17.94 billion. According to InvestingPro analysis, the stock appears undervalued based on its Fair Value assessment, with the company maintaining strong profitability metrics including a 9.9% return on assets.
The company’s operating margin for the quarter was reported at 13.2%, which was higher than the anticipated 12.1% by both consensus and Bernstein’s analysts. The firm’s financial performance was bolstered by strong contributions across its various segments.
Lockheed Martin also confirmed its financial outlook for the year 2025, providing a steady vision for its future performance. In a notable corporate update, the company announced that Chief Financial Officer (CFO) Kenneth R. Possenriede would be departing to explore new opportunities.
During this past quarter, Lockheed Martin actively returned value to its shareholders by repurchasing $750 million of its shares. Additionally, the company distributed dividends totaling $796 million, further underscoring its commitment to shareholder returns. Notably, InvestingPro reveals that Lockheed Martin has raised its dividend for 22 consecutive years and maintained payments for 42 years, with a current yield of 2.86%. The consistency in Lockheed Martin’s financial strategies and outcomes was reflected in Bernstein’s decision to reaffirm their stance on the stock’s rating and price target.
In other recent news, Lockheed Martin Corporation reported strong financial results for the first quarter of 2025, exceeding analysts’ expectations. The company achieved earnings per share of $7.28, surpassing the forecast of $6.35, and generated revenue of $18 billion, slightly above the projected $17.78 billion. Lockheed Martin also reaffirmed its full-year guidance, anticipating mid-single-digit sales growth and segment margins of 11%. The company returned $1.5 billion to shareholders through dividends and share repurchases during the quarter. Notably, the aerospace and defense giant plans to deliver 170-190 F-35 fighter jets in 2025 and invest over $10 billion in research and development. In terms of analyst perspectives, Lockheed Martin’s strong international demand for defense products continues to drive its growth. The company remains confident in its ability to absorb potential tariff impacts and maintain its profit targets for the year.
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