Fubotv earnings beat by $0.10, revenue topped estimates
On Monday, RBC Capital Markets adjusted its outlook on Lockheed Martin (NYSE:LMT), reducing the aerospace and defense company's price target to $570 from $665 while keeping an Outperform rating on the stock. According to InvestingPro data, the stock currently trades near its Fair Value, with analyst targets ranging from $416 to $685. Ken Herbert, an analyst at RBC Capital, cited minor changes in estimates ahead of the fourth-quarter 2024 results as the reason for the adjustment. Despite the lower price target, the firm's key expected catalysts for Lockheed Martin, such as positive top-line growth, the F-35 program's risk reduction, and strength in the Missiles and Fire Control (MFC) segment, are believed to remain intact.
Herbert highlighted the MFC segment's robust demand within the Department of Defense (DoD) and continued to project approximately 8% top-line growth for the company. Operating margins are expected to reach around 12.5% by 2026. InvestingPro data shows the company has maintained strong financial health with a 5.33% revenue growth and has consistently raised its dividend for 22 consecutive years, currently yielding 2.66%. The analyst also noted that international defense sales, which accounted for about 27% of the estimated revenue for 2024, could provide an upside for Lockheed Martin.
The ongoing de-risking of the F-35 program was mentioned as a positive factor, with expectations of less than $5 million being withheld for each F-35 delivery moving forward. However, Herbert expressed the belief that broader headline risks associated with the Department of Defense's overall budget (DOGE) are likely to continue affecting Lockheed Martin's stock.
Lockheed Martin's financial performance and market position are closely watched by investors and industry analysts, as the company is a significant player in the aerospace and defense sector. The changes in price target by RBC Capital Markets reflect the firm's analysis of various factors that could influence the company's future earnings and stock performance. For deeper insights into Lockheed Martin's valuation and prospects, InvestingPro subscribers can access comprehensive research reports with detailed financial metrics and expert analysis, part of the platform's coverage of over 1,400 US equities.
In other recent news, Lockheed Martin secured a $270M deal with the U.S. Air Force for F-22 upgrades and completed the delivery of 10 S-70i Black Hawk helicopters to the Philippines. The company also surpassed estimated third-quarter earnings per share, reporting an EPS of $6.80, and increased its full-year 2024 revenue guidance to approximately $71.25 billion. Truist Securities initiated coverage of Lockheed Martin, assigning it a Buy rating, expressing confidence in the company's prospects.
In other leadership changes, OJ Sanchez and Mike Shoemaker have assumed new roles at the Skunk Works division and the Integrated Fighter Group, respectively. The company launched a new subsidiary, Astris AI, dedicated to providing artificial intelligence solutions for the U.S. defense industrial base. Lockheed Martin also refuted rumors of a potential cancellation of its $1 trillion F-35 fighter jet contract. These are recent developments at Lockheed Martin.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.