Lockheed Martin Corp. (LMT – Free Report) reported fourth-quarter 2017 adjusted earnings from continuing operations of $4.30 per share, which surpassed the Zacks Consensus Estimate of $4.06 by 5.9%.
Excluding one-time impacts of Tax Cuts and Jobs Act, the company reported a loss of $2.50 per share as against the earnings of $3.25 from the year-ago period.
Lockheed Martin Corporation Price, Consensus and EPS Surprise
Lockheed Martin Corporation Price, Consensus and EPS Surprise | Lockheed Martin Corporation Quote
For 2017, the company generated adjusted earnings of $13.33 per share topping the Zacks Consensus Estimate of $13.13.
Operational Highlights
In the reported quarter, total revenues came in at $15.14 billion, which exceeded the Zacks Consensus Estimate of $14.75 billion by 2.6%.
Moreover, the company’s revenues increased 10.1% from $13.75 billion a year ago. Notably, all segments registered year-over-year growth in sales, except Space Systems.
For 2017, the company generated revenues of $51.05 billion, which surpassed the Zacks Consensus Estimate of $50.63 billion. The annual revenues registered year-over-year growth of 8%.
Backlog
Pentagon’s prime defense contractor, Lockheed Martin ended 2017 (on Dec 31, 2017) with $99.9 billion in backlog, up 3.9% from $96.2 billion at the end of 2016. Of this, the Aeronautics segment accounted for $35.8 billion while Rotary and Mission Systems contributed $29 billion. Also, $17.3 billion came from Space Systems and $17.8 billion from Missiles and Fire Control.
Segmental Performance
Aeronautics: Sales increased 12% year over year to $6 billion, primarily driven by higher net sales from the F-35 program on account of increased production volume. Higher net sales from the C-130 program backed by increased aircraft delivery also boosted the segment’s top line.
Operating profit advanced 20% year over year to $661 million, while operating margin expanded 70 bps to 10.9%.
