In a recent earnings presentation, a leading aerospace and defense company outlined its financial outlook for fiscal year 2025. The company anticipates a total FAS/CAS pension adjustment of approximately $1.125 billion and expects its segment margin to reach 11%. The projected consolidated operating profit is expected to fall between $8.915 billion and $9.015 billion, with an effective tax rate around 15.8%.
Share repurchases are estimated to be approximately $3 billion, reflecting the company's commitment to delivering shareholder value. Management emphasized the importance of resource allocation to address the existing backlog and fulfill commitments.
For fiscal year 2025, the company forecasts Aerospace (AERO) sales between $29.3 billion and $29.7 billion, with an operating profit ranging from $2.92 billion to $2.96 billion. In the Missiles and Fire Control (MFC) segment, sales are projected at $13.6 billion to $13.9 billion, with operating profit between $1.905 billion and $1.935 billion.
The Rotary and Mission Systems (RMS) segment is expected to generate sales of $18.1 billion to $18.3 billion, alongside an operating profit of $2.04 billion to $2.06 billion. Lastly, the Space segment is anticipated to bring in sales of $12.75 billion to $12.85 billion, with operating profits estimated between $1.235 billion and $1.245 billion.
The company is focused on building momentum towards delivering its financial outlook for FY25, with an overarching strategy to create sustained value for both customers and shareholders.
Wall Street Analysts Forecast
Based on the one-year price targets offered by 19 analysts, the average target price for Lockheed Martin Corp (LMT, Financial) is $527.62 with a high estimate of $670.00 and a low estimate of $424.00. The average target implies an upside of 17.92% from the current price of $447.43. More detailed estimate data can be found on the Lockheed Martin Corp (LMT) Forecast page.
Based on the consensus recommendation from 25 brokerage firms, Lockheed Martin Corp's (LMT, Financial) average brokerage recommendation is currently 2.4, indicating "Outperform" status. The rating scale ranges from 1 to 5, where 1 signifies Strong Buy, and 5 denotes Sell.
Based on GuruFocus estimates, the estimated GF Value for Lockheed Martin Corp (LMT, Financial) in one year is $562.55, suggesting a upside of 25.73% from the current price of $447.43. GF Value is GuruFocus' estimate of the fair value that the stock should be traded at. It is calculated based on the historical multiples the stock has traded at previously, as well as past business growth and the future estimates of the business' performance. More detailed data can be found on the Lockheed Martin Corp (LMT) Summary page.
