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LMT NYSE· Lockheed Martin Corporation
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LMT NYSE· Lockheed Martin Corporation
Earnings report Q4 2023

Lockheed Martin Reports Steady Revenue Growth in Latest Quarter

Segments of revenue

In the latest quarter, Lockheed Martin Corporation reported total net sales of $67.57 billion. The company's revenue is divided into two segments: products and services. The products segment generated $56.27 billion in net sales, while the services segment contributed $11.31 billion.

Strengths

Lockheed Martin demonstrated steady revenue growth in the latest quarter. The company's total net sales increased by 2.6% compared to the same quarter last year. This growth can be attributed to the strong performance of both the products and services segments. The products segment saw a slight increase of 1.4% in net sales, while the services segment experienced a growth of 7.3%. Management attributes this growth to increased demand for the company's products and services in the defense industry.

Challenges

Despite the overall positive performance, Lockheed Martin faced some challenges in the latest quarter. The cost of sales increased by 2.4% compared to the same quarter last year, primarily driven by higher costs in the products segment. This increase in costs impacted the company's gross profit, which decreased by 6.6% to $8.48 billion. Additionally, the company incurred severance and other charges, amounting to $92 million, which further impacted the cost of sales.

Noteworthy

It is worth mentioning that Lockheed Martin is involved in ongoing legal disputes. The company is currently engaged in a lawsuit against the New York Metropolitan Transportation Authority (MTA) regarding a breach of contract. If the outcome of this lawsuit is unfavorable for Lockheed Martin, it could have an adverse effect on the company's results of operations and cash flows.

Summary

Lockheed Martin Corporation reported steady revenue growth in the latest quarter, with total net sales reaching $67.57 billion. The company's products and services segments both contributed to this growth, with the services segment showing particularly strong performance. However, the company faced challenges in terms of increased costs and legal disputes. Overall, Lockheed Martin's performance in the latest quarter reflects its position as a leading player in the defense industry, with continued demand for its products and services.

Source documents

Form 10-K  filed on Jan 23, 2024
117 pages scanned

Reference data

Company financials Q4 revenue 18.87B
Analyst estimates Q4 EPS beat by 18.94%
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