LMT - Can Lockheed Martin shrug off supply chain woes to post Q2 earnings beat?

Lockheed Martin ( NYSE: LMT ) is scheduled to announce Q2 earnings on Tuesday, Jul. 19, before market open.

Consensus EPS estimate is $4.67 and consensus revenue estimate is $16.02B (-5.9% Y/Y).

Over the last 1 year, LMT has beaten EPS and revenue estimates 75% of the time.

Over the last 3 months, EPS estimates have seen 6 downward revisions while revenue estimates have seen 10 downward.

LMT fell after posting Q1 revenue miss , hurt by COVID-related supply chain snags, and reaffirming its FY22 outlook.

SA contributor Gen Alpha in a bullish analysis said LMT should benefit from global tensions and will likely return more capital to shareholders this year.

Recent news:

• The U.S. Air Force successfully tested a hypersonic missile from LMT, Reuters reported . In a separate test, the Defense Advanced Research Projects Agency demonstrated its Operational Fires program.
• LMT bought annuity contracts to transfer ~$4.3B of gross pension obligations to Athene ( ATH ), expected to result in a ~$1.5B non-cash settlement charge in Q2.
• LMT CFO Jay Malave said the firm still needs to resolve some items with the Dept. of Defense to wrap up 3 years of talks on F-35 production lots, Bloomberg reported .
• LMT seeks to nearly double its production of Javelin anti-tank missiles to 4K/year, CEO Jim Taiclet told CBS .
• Countries buying LMT's F-35 jets may face millions in added costs if issues arise during long-delayed combat simulation tests, Bloomberg reported .

Some recent orders:

• Greece sent an official request to the U.S. to purchase 20 F-35 jets and is considering acquiring a second set.
• LMT unit Sikorsky Aircraft was awarded a $429.17M contract related to Black Hawk choppers. It also bagged a ~$2.28B contract for procuring 120 Black Hawk helicopters for FY22-26.
• LMT was awarded a $632.13M contract for engineering and support for F-35 Lightning II aircraft.

SA Quant rating on LMT is Hold as it scored poorly on factor grades valuation, growth, earnings estimate revisions.

But SA Authors on average rated LMT Buy , in-line with bullish sell-side ratings .

LMT stock, which gained ~11% YTD, outperformed the S&P 500 and S&P 500 Aerospace & Defense over the last 1 year .

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