Lockheed Martin to report Q2 as Mideast tension renews

Lockheed Martin (LMT) will report second-quarter results before the opening bell on Thursday, which should offer a clearer picture of whether the defense contractor has overcome production issues to benefit from a surge in weapons demand.  

Wall Street expects Lockheed to report earnings of $7.18 per share, down 1.5% from a year earlier, on revenue of $19.33B, up 6.4%.

The earnings arrive as tensions renewed in the Middle East, driving a surge in demand for advanced missile-defense systems and precision-guided weapons.

Lockheed entered the quarter after reporting first-quarter results that were hurt by unfavorable profit adjustments tied to its F-16 and C-130 programs, as engineering delays, integration challenges, and supplier bottlenecks increased costs and delayed deliveries. The company also operated under a shorter fiscal quarter, reducing reported revenue.

Beyond quarterly results, attention will center on Lockheed's ability to capitalize on growing defense spending. The U.S. could expand purchases of the company's JASSM and LRASM cruise missiles, while European allies continue to increase defense investments. 

Management's commentary on production capacity, supply chains, and the outlook for missile, aircraft, and defense systems demand is usually closely watched by investors.

Over the last 1 year, LMT has beaten EPS estimates 100% of the time and has beaten revenue estimates 50% of the time. Over the last 3 months, EPS estimates have seen 7 upward revisions and 6 downward. Revenue estimates have seen 6 upward revisions and 9 downward.