Investors in Lockheed Martin (NYSE:LMT) certainly have something to cheer in today’s mixed session. At the time of this writing, LMT stock has surged approximately 3%, hitting a fresh all-time high of $508.09.
This move follows the company’s very strong first-quarter earnings release.
For Q1, Lockheed reported earnings per share of $6.43, handily beating the Zacks consensus estimate of $6.07. Additionally, on the top line, the company brought in $15.13 billion. This also beat estimates and showed a year-over-year (YOY) improvement from last year’s number, which was slightly below $15 billion.
The company saw output growth outpace supply-chain constraints, something that appears to have constricted analyst estimates. Thus, as far as operations are concerned, there’s a lot to like about these numbers. Given Lockheed’s higher-than-expected EPS numbers, its forward multiple has come down slightly, although it has likely been impacted to some degree by today’s gains.
Let’s dive more into what investors may want to make of these very strong numbers.
LMT Stock Surges to New All-Time High Following Earnings
These incredibly strong results highlight the company’s importance to the western war machine, which is on full display with the ongoing conflict between Russia and Ukraine. As unfortunate as this conflict is, for investors in this world-class defense giant, the company’s runway for growth appears to have no end.
The growth in defense spending seen by foreign governments in Europe and elsewhere was on full display in Lockheed’s results. Chief Financial Officer Jay Malave says the company expects Ukraine-related revenues to reach $6 billion by 2027, up from $1.5 billion expected this year.
Notably, Lockheed Martin did see small declines in its aeronautics division, as well as its missiles and fire control segments. However, these numbers were still overall solid and paint a rosy picture of the company’s diversified business model.
Lockheed Martin is one stock I’ve got high on my radar right now. Even at all-time highs, LMT stock doesn’t look overly expensive. Accordingly, I can understand the move in shares today.
On the date of publication, Chris MacDonald did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
