Lockheed Martin Q1 FY12/25 Earnings Review
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Charts vs. Reality - Again
by Alex King
I should start by saying I sold a small position in LMT lately for the simple reason that it had generated some gains fairly quickly and this market being what it is, I am a little twitchy with single-name stocks, since they are difficult to hedge, meaning you do actually have to call them correctly if you want to make money! (Whereas the beauty of long index ETFs is that so far if wrong you can just hedge, make money on the short side and then wait for the long to come back into value. Yes I know. Yes you’re right. But I still like this method).
How to think about this name? Well, the quarter was OK. Backlog fell a little but it’s still up 9% on a year ago. Revenue growth accelerated a touch to +4% this qtr vs. same qtr last year but on a TTM basis growth slowed to just 3.1%. Cashflow margins moved up slightly to 11% on a TTM UFCF basis; net leverage fell a touch to 2.00x TTM EBITDA.
The stock chart tells a similarly bullish story.