Is LMT's Q1 2025 EPS forecast achievable?
4/4/2025 04:41pm
**Lockheed Martin's Q1 2025 EPS forecast is achievable**, considering the company's earnings guidance and historical performance. Here's an analysis to support this conclusion:
1. **Earnings Guidance**: Lockheed Martin has provided an EPS guidance of $27.000 to $27.300 for Q1 2025. This range is slightly below the consensus EPS estimate of $27.910, indicating that the company's forecast is in line with analyst expectations.
2. **Historical Performance**: The company has a track record of consistent earnings performance. For instance, in 2024, despite facing challenges, Lockheed Martin maintained a strong earnings per share (EPS) of $27.47. This suggests that the company has the capability to meet or exceed its earnings targets.
3. **Recent Developments**: Although there have been some setbacks, such as the loss of the NGAD program to Boeing and disappointing Q4 earnings, the company's long-term prospects remain positive. Lockheed Martin expects sales growth of 4% to 5% in 2025, which supports the achievability of its EPS forecast.
4. **Analyst Confidence**: Despite the challenges, analysts remain optimistic about Lockheed Martin's future. The company's consistent dividend growth and strong demand for defense technology indicate a stable financial outlook, which is a good indicator of achievable earnings targets.
In conclusion, based on the company's earnings guidance, historical performance, recent developments, and analyst confidence, Lockheed Martin's Q1 2025 EPS forecast of $27.000 to $27.300 is achievable.