Lockheed Martin stock jumps after topping earnings estimates
Shares of Lockheed Martin are moving higher after the company beat earnings expectations for the quarter.
Video Transcript
- All right, everyone, time now for Triple Play, the three stocks that we're watching in the final 30 minutes of trading. We've got Lockheed Martin, Peloton, and Hasbro on deck. Now, my pick, Lockheed Martin, ticker LMT, the world's largest defense contractor, really enjoying gains today after a strong Q3 showing. The stock, as you can see there, up just about almost 9% there.
Earnings of $6.71 per share on revenue of 16.6 billion were in line with expectations. Profits beat estimates. And net income coming in at $1.78 billion, aerospace and their space businesses really leading the way there. Now in a statement, CEO James Stoechler said, Lockheed Martin delivered a solid quarter, highlighted by strength in free cash flow, orders, and operating margins that positions us well to achieve our full year commitments.
Now, we're seeing this patience really paying off for investors, Lockheed also announcing a $14 billion share buyback authorization. And they expect to execute a $4 billion accelerated share repurchase program in Q4. Now, that's interesting timing because it's before that new tax on buybacks kicks in in January. Now while Lockheed also has a $140 billion backlog of future orders, growth isn't expected to really accelerate until 2024, as some of their investments in hypersonic missiles and other futuristic innovations really need a bit more time to pay off, Seana.
