Lockheed Martin (LMT, Financial) is a global security and aerospace company headquartered in Bethesda, Maryland, that employs approximately 125,000 people worldwide and is principally engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services.
As a global security, aerospace and information technology company, the majority of Lockheed Martin's business is with the U.S. Department of Defense and federal government agencies. In fact, Lockheed Martin is the largest provider of IT services, systems integration and training to the U.S. government. The remaining portion of Lockheed Martin's business is comprised of international government and some commercial sales of products, services and platforms.
The company reported a strong first quarter and witnessed positive operational and financial results from its initiatives to strengthen its competitive and strategic market positions.
First-quarter results
The company reported first-quarter net sales of $11.7 billion, which was $10.1 billion in the prior-year quarter.
Net earnings in the first quarter were $794 million, or $2.58 per share, which was $878 million, or $2.74 per share, in the prior-year quarter.
Cash from operations in the first quarter was $1.6 billion, which was $1.0 billion in the prior-year quarter.
Capex during the quarter was $151 million ($118 million in the prior-year quarter).
It repurchased 2.4 million shares for $501 million, which were 3.0 million shares for $604 million in the prior-year quarter.
Dividend
The company will pay a third-quarter dividend of $1.65 per share. The dividend is payable on Sept. 23 to holders of record as of the close of business on Sept. 1.
Expectations for 2016
| Â | Range |
| Net sales | To be between $49,600 and $51,100 |
| Consolidated operating profit | To range between $5,625 and $5,775 |
| Diluted earnings per share | To be between $11.50 and $11.80 |
| Cash from operations | To be around ≥ $5,400 |
Focus
- Enhancing portfolio.
- Continuing to drive innovation across the company.
- Expanding core capabilities into new markets.
- Strengthening global operations.
- Pursuing greater efficiency and value.
- Developing partnerships.
Strong attributes of the company
- Sustained financial performance.
- Strong dividend yield.
- Share repurchases.
- Invested $939 million as capex in 2015.
Achievements in 2015
- Promoting a strong missile defense.
- Producing the world’s most advanced aircraft.
- Expanding boundaries of space exploration.
On a concluding note
2015 was a great year for the company. It delivered solid operating margins, cash flows and shareholder returns. It generated more than 16% of shareholder returns in 2015. With these achievements in 2015, the company is positioned for continued success and long-term growth. The company is doing well right now, and adding this company is going to create shareholder returns.
Disclosure: I do not hold any position in the company.
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