LMT - Embedded Expectations Analysis - 2018 06 04
Lockheed Martin (LMT:USA) currently trades near recent highs relative to UAFRS-based (Uniform) Earnings, with a 20.5x Uniform P/E, implying bullish expectations for the firm. However, management has concerns about their outlook, growth, and costsSpecifically, management may lack confidence in their ability to meet their increased outlook, driven by concerns about their ability to meet their 2018 goal of delivering more than 90 aircraft to their US and international customers, and may have concerns about their F-35 aircraft. Additionally, they may have concerns about their Saudi Arabia opportunity, and may lack confidence in the sustainability of overall growth seen in three of their four business this quarter. Furthermore, they may lack confidence in their ability to manage costs in their Sikorsky business, and may have concerns about their ability to increase their capacity for missile opportunities
Lockheed Martin is a security and aerospace company. The company has four segments: Aeronautics, which is engaged in the research, design, development, manufacture, integration, sustainment, support and upgrade of military aircraft; Missiles and Fire Control, which provides air and missile defense systems, logistics, fire control systems, and mission operations support; Rotary and Mission Systems, which provides design, manufacture, service and support for military and commercial helicopters, radar systems, and simulation and training services; Space, which researches, designs, develops, engineers and produces satellites, space transportation systems, and strategic, strike, and defensive systems.
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