Lockheed Martin Corp

While the Middle East represents the most immediate opportunities, LMT is also working towards more promising opportunities in the Asia-Pacific region.

In this part of the series, we’ll look at the outlook for General Dynamics’ individual business segments. General Dynamics has four major business segments.

UTC (UTX) stock has generated more than 130% returns over the last decade. This is nearly double the S&P index returns during the same time period.

Most emerging economies are grappling with aging fleets and equipment. Modernization will drive growth in the short term as a result.

Boeing has a history of increasing its dividend payout once in every four quarters. The company has already announced a 20% increase in quarterly dividends for 2016.

In January 2016, Lockheed Martin unveiled its plan to shed its Information Systems and Global Solutions segment and merge it with Virginia-based Leidos Holdings (SAI).

Boeing is six months ahead of schedule on its 737 MAX production, which means earlier deliveries of the aircraft.

Boeing (BA) recorded $94.6 billion in revenues for 2016—a 2% YoY fall, mainly on the back of lower commercial airplane deliveries in the year.

With total sales of $45,358 million in 2013, Lockheed Martin is the largest defense contractor in the world. The other major defense contractors in the world include The Boeing Company and Raytheon Company.

In 2013, Lockheed Martin clocked revenues of $45.4 billion. Of its revenues, 82% come from the U.S. government, around 17% from international customers, and 1% from other U.S. commercial customers.

In 3Q16, Transdigm Group’s (TDG) revenues were up 15.4% YoY to $797.7 million—below Wall Street analysts’ consensus estimates of $804.5 million.

TransDigm (TDG) has increased the size of its existing term loan facility by $650 million to facilitate a one-time special dividend of $24 per share.

Boeing, the world’s largest aerospace company, announced its second-quarter earnings results before the market opened on July 25.

Raytheon’s Integrated Defense Systems segment saw marginally lower sales during the year due to lower sales across most of its major programs such as the Patriot program.

General Dynamics’ total backlog grew from $45.9 billion at the end of 2013 and to $72.4 billion at the end of 2014. This was a whooping 58% increase.

Both Boeing’s (BA) and Northrop Grumman’s (NOC) teams have submitted clean sheet bids to the US Air Force.

On completion of the LogMeIn-GoToMeeting merger, Citrix shareholders will get ~27.6 million shares.

Honeywell signed an agreement with VietJet Air to supply 98 auxiliary power units to its fleet of 135 Airbus A320s. The deal was valued at $100 million, which includes maintenance services for 12 years.

In September 2015, Honeywell acquired Aviaso Software, a privately held aviation software company based in Switzerland. Aviaso develops and provides fuel efficiency and emission-saving software to the airline industry.

Boeing (BA) reported 4Q16 revenue of $23.3 billion, beating analysts’ estimates of $23.2 billion. Its EPS of $2.47 also beat analysts’ estimate of $2.35.

General Dynamics’ stock outperformed the index at all times. In the past year, it gave its shareholders 38% returns. The index returned 15% to shareholders.

Aviation component manufacturer TransDigm Group is scheduled to declare its fiscal 4Q16 earnings on November 10, 2016.

Rumors have been flying about the potential sale of Learjet to Cessna Aircraft. Learjet is a light business jet manufacturing unit housed by Bombardier (BDRBF).

Parker-Hannifin (PH), a leading manufacturer of motion and control technologies, declared its 4Q16 earnings on August 3, 2016.

In the long term, valuation multiples will depend on Boeing’s ability to ramp up production if the 787 reduces its costs and improves its margins.

On December 12, 2016, Boeing (BA) announced a stock repurchase plan worth ~$14 billion, which represents almost 15% of its outstanding shares.

Credit Suisse cited L-3 Communications (LLL), Raytheon (RTN), and General Dynamics (GD) as its picks to hedge against the election cycle.

According to Lipper’s funds flow data, investment-grade bond funds saw net outflows of $789.1 million up to the week ending November 25.

In this series, we’ll assess Boeing’s (BA) key indicators for 4Q16. We’ll look at analyst estimates for BA’s 4Q16 performance and assess whether the indicators justify the estimated earnings results.

Raytheon is a global technology leader and US defense contractor. It primarily develops and manufactures weapons and military and commercial electronics.

The flows into investment-grade bond funds were positive for the week ending November 18. Investment-grade bond funds saw net inflows of $945.0 million.

CAE has a market capitalization of $3.0 billion. After its 2Q16 earnings report, CAE fell by 2.9% to close at $11.07 per share as of November 11, 2015.

Lockheed Martin (LMT) recently disclosed buying a stake in chipmaker IQ-Analog. IQ-Analog develops chips capable of relaying data at very high speeds.

United Technologies Corporation (UTC) provides high technology products and services to the building systems and aerospace industries worldwide.

There have been speculations about Raytheon’s disagreements with Leonardo over workshare agreements. The disagreements could unnerve its partners.

Raytheon will release its 3Q16 earnings on October 27. The consensus forecast is for Raytheon to post an adjusted EPS of $1.66—12.9% growth YoY.

Raytheon is protected from US government spending due to its high international exposure. However, its Army exposure is a source of risk.

Lockheed Martin (LMT) increased its ownership interest in the AWE venture by 18% to 51% on August 24.

United Technologies (UTX) earlier maintained that Pratt & Whitney was scheduled to deliver 200 geared turbofan (or GTF) engines in 2016.

Troubles in the helicopter manufacturing industry are another example of how the downturn in the oil industry has had a domino effect across sectors.

Raytheon’s Integrated Defense Systems, or IDS, segment had a strong performance in 4Q14. The segment’s net sales were $1,627 million.

On Monday, December 19, 2016, Boeing (BA) stock rose ~1.1% to $156.11.

Since the Trump administration announced its new budget proposal, Boeing (BA) stock has risen 1.1%, closing at $179.4 on March 20, 2017.

Lockheed Martin (LMT) had a successful fourth quarter. Its net sales grew from $11.5 billion to $12.5 billion. The net earnings were $904 million for the quarter.

Wall Street analysts have provided a consensus “buy” recommendation with a consensus ~1.92 rating for Boeing (BA) stock.

Boeing’s Commercial Airplanes segment saw a 6% YoY (year-over-year) decline in revenue to $14.3 billion in 1Q16.

Boeing (BA) is set to report its Q3 earnings results on October 23. Reuters-polled analysts foresee more dismal financial results for the company.

Lockheed Martin earns maximum revenues from the F-35 II joint striker program. The program is part of its Aeronautics segment.

One of LMT’s cost reduction activities includes transferring employees from a defined benefit plan to a defined contribution plan. This reduced the company’s pension costs.

The week before LMT announced its results, its stock gained ~1.5%. However, these gains were wiped out after the announcement of the company’s 3Q15 results.

An order backlog is an important indicator for investors to understand how a manufacturing company’s revenue could grow in the future.

LMT had a few cost reduction activities. It reduced its workforce and factory space. It also shifted its employees from defined benefit pension plans to defined contribution plans.

In terms of revenue, Lockheed Martin (LMT) is one of the largest defense contractors. Wars with Afghanistan and Iraq led to an increase in defense budgets, which has benefited LMT.

Lockheed Martin started deliveries on its major F-35 program just three years ago. Lockheed Martin works with almost 1400 suppliers, including companies like Northrop Grumman.

The U.S. government is Lockheed Martin’s (LMT) major customer. With almost 82% of its revenues from the U.S. government, LMT highly depends on the government.

The impact of sequestration is different for Lockheed Martin’s (LMT) different business segments. For segments with longer product cycles, like Aeronautics and Space Systems, the impact will be muted.

Lockheed Martin on an acquisition spree As we saw in the previous article in this series, Lockheed Martin’s revenue has been negatively affected by U.S government spending cuts through sequestration and the Budget Control Act (or BCA) of 2011. Future revenue growth is also at risk, given Congress’s deadlock over the rollback of the BCA. As the largest defense contractor, […]

As we’ve seen in the last few articles of this series, Lockheed Martin’s (LMT) management has been trying different strategies to drive growth in its revenue and earnings. These efforts seem to have paid off.

What’s more important to retail investors is Lockheed Martin’s commitment to return at least 50% of its free cash flow to its shareholders. It does this through dividend payouts and share buybacks.

At the recent Sohn Investment Conference, Jeffrey Gundlach of DoubleLine Capital expressed his belief that Donald Trump would win the presidency.

The latest durables orders report exceeded the analysts’ expectations with the headline figures at 2.2% in February 2014, compared to 1.0% growth projected by the analysts.

In 2013, EAC purchased Evergreen Helicopters (EHI) and Air Amazonas (AA), which will more than double the company’s revenue.

In 2009, Erickson Air Crane sold to ZM Private Equity (also known as Centre Lane Partners) and hired a new CEO. In April 2012, EAC went public.

Lockheed Martin (LMT) operates in five business segments—Aeronautics, Information Systems & Global Solutions, Mission and Fire Controls, Mission Systems & Trainings, and Space Systems.

United Technologies (UTX) reported its Q3 earnings today before the market opened. UTX’s revenues of $19.5 billion beat the expectation of $19.39 billion.

Lockheed Martin released its third-quarter earnings results today. The company reported revenue of $15.2 billion in the quarter, a 6% year-over-year rise.

Honeywell kicked off industrials earnings season, beating estimates. With Boeing, Caterpillar, 3M, GE, and more reporting soon, here’s what to expect.

UTX is scheduled to release its third-quarter earnings results on October 22 before the market opens. It’s returned 28.5% year-to-date.

Amid ongoing troubles with its 737 MAX commercial planes, Boeing has received some positive news: $2.9 billion in orders from the US Department of Defense.

Boeing could receive a multimillion-dollar defense order soon. Thailand’s army announced its plans to purchase eight Boeing attack helicopters, according to a report.

The 737 MAX accounted for nearly 70% of Boeing’s overall commercial aircraft deliveries, and 30% of its total operating profit.

Amid the ongoing crisis with Boeing’s (BA) 737 MAX aircraft, the company won another major defense contract in August from the USAF.

Despite its weak economic outlook, there are positives for Lockheed Martin (LMT). The company expects to see a huge cash pile generated from operations.

Yesterday, the US Air Force awarded a $999 million contract to Boeing (BA) to upgrade the wings of its A-10 Thunderbolt II attack aircraft.

The Trump administration floated the sale of fighter jets to Taiwan. In an $8 billion deal, Lockheed Martin plans to sell 66 F-16 fighters to Taiwan.

Daniel Loeb’s Third Point has reduced its stake in United Technologies. As per a regulatory filing, the fund sold 480,000 UTX shares in the second quarter.

Boeing (BA) won a $55.5 million contract for certain modifications in the telescopic boom of the KC-46 Pegasus refueling tanker from the US Air Force.

Boeing (BA) is stuck in the middle of the escalating trade war between the US and China. Recently, the trade tension intensified.

The ongoing trouble with 737 MAX series planes has been hurting Boeing’s (BA) overall commercial aircraft deliveries.

On Wednesday, the Dow Jones fell while other major US indexes moved up. The Dow was mainly pulled down by two of its high-weighted stocks—Boeing (BA) and Caterpillar (CAT).

Boeing (BA) reported dismal second-quarter results with the top and bottom lines both missing Wall Street analysts’ estimates.

Boeing and Lockheed Martin are competing for a $15 billion order. Defense spending is expected to increase as India’s armed forces modernize.

Boeing (BA) plans to report its second-quarter 2019 results on July 24.

Boeing has encountered yet another problem. The US Department of Justice has reportedly subpoenaed the airplane maker regarding an ongoing investigation about 787 Dreamliner safety issues.

Between 2014 and 2018—during Modi’s first term—India imported $13.9 billion worth of arms, making it the world’s second-largest importer of arms. With $16.9 billion worth of arms imports, Saudi Arabia was the largest importer of arms during the period.

One of the key points on which Modi campaigned was national security.

Boeing (BA) is scheduled to report its first-quarter earnings results on April 24. The company might not be able to continue its growth momentum.

Boeing (BA) is currently going through one of the worst periods in its history following two deadly crashes that involved its fast-selling 737 Max series planes.

Boeing (BA) gained 1.5% last Friday following a report that the airplane manufacturer could come up with a software fix for its 737 MAX jets sooner than expected.

Boeing (BA) shares fell more than 5% on March 11 after several airlines grounded their 737 Max 8 fleets.

Boeing’s most advanced and fuel-efficient 737 Max jets are in the spotlight once again after a 737 Max operated by Ethiopian Airlines crashed on Sunday.

On March 11, the Dow Jones Industrial Average futures are trading over 170 points lower in the pre-market session.

General Dynamics raised its quarterly dividend by 9.7% on March 6.

Boeing (BA) stock has been rallying since the beginning of this year and has outperformed major US indexes.

Boeing (BA) has always tried to enhance shareholders’ wealth through dividend payments and share buybacks.

Among the 24 analysts covering Boeing, nine recommended a “strong buy,” ten recommended a “buy,” and five recommended a “hold.”

The Boeing Company (BA) has received a consensus “buy” recommendation from Wall Street analysts polled by Reuters.