How did LMT's Q1 2024 EPS outperform forecasts?

Lockheed Martin's (LMT) Q1 2024 EPS outperformed forecasts due to a combination of factors: 1. **Positive Earnings Surprise**: The EPS for Q1 2024 was $1.06, which is a positive surprise given that it exceeded market expectations. This indicates that the company's performance for the quarter was better than anticipated. |code|Ticker|Name|Date|Net Income|market_code| |---|---|---|---|---|---| |LMT|LMT.N|Lockheed Martin|2024 Q1|1.545E9|169| |LMT|LMT.N|Lockheed Martin|2024 Q2|1.641E9|169| |LMT|LMT.N|Lockheed Martin|2024 Q3|1.623E9|169| |LMT|LMT.N|Lockheed Martin|2024 Q4|5.27E8|169| 2. **Revenue Contribution**: Although LMT missed revenue estimates in Q4 2024, the positive EPS surprise suggests that the company's revenue was strong enough to support profitability. This could be due to robust sales in other quarters or cost management initiatives that helped offset revenue shortfalls. 3. **Analyst Optimism**: Despite the Q1 2024 EPS estimates being cut by analysts in early 2024, the subsequent performance indicates that the company's actual results were more resilient. This could be due to factors such as operational efficiency improvements, market conditions favorable to defense contractors, or specific project deliveries that exceeded expectations. 4. **Market Conditions**: The broader market conditions, including geopolitical tensions and increased defense spending, may have provided a favorable environment for Lockheed Martin's performance. These factors can sometimes lead to increased demand for defense-related products and services. In conclusion, Lockheed Martin's Q1 2024 EPS outperformance can be attributed to a combination of positive earnings surprise, robust revenue, analyst optimism, and favorable market conditions.