Is LMT's long-term earnings growth still strong?

**Lockheed Martin's long-term earnings growth appears to be facing headwinds.** Here's a detailed analysis:

1. **Recent Financial Performance**: Lockheed Martin's net income declined by 22.89% to $5.34 billion in the fourth quarter of 2024 compared to the same period in the previous year. However, the company's total revenue grew by 5.14% to $71.04 billion.

|code|Ticker|Name|Date|Net Income (FY) YoY|Net Income (FY)|market_code|
|---|---|---|---|---|---|---|
|LMT|LMT.N|Lockheed Martin|2020|9.678972712680578|6.833E9|169|
|LMT|LMT.N|Lockheed Martin|2021|-7.580857602809893|6.315E9|169|
|LMT|LMT.N|Lockheed Martin|2022|-9.231987331749803|5.732E9|169|
|LMT|LMT.N|Lockheed Martin|2023|20.725750174459176|6.92E9|169|
|LMT|LMT.N|Lockheed Martin|2024|-22.890173410404625|5.336E9|169|

|code|Ticker|Name|Date|Total Revenue (FY)|Total Revenue (FY) YoY|market_code|
|---|---|---|---|---|---|---|
|LMT|LMT.N|Lockheed Martin|2020|6.5398E10|9.339263024142312|169|
|LMT|LMT.N|Lockheed Martin|2021|6.7044E10|2.5168965411786295|169|
|LMT|LMT.N|Lockheed Martin|2022|6.5984E10|-1.5810512499254221|169|
|LMT|LMT.N|Lockheed Martin|2023|6.7571E10|2.4051285160038796|169|
|LMT|LMT.N|Lockheed Martin|2024|7.1043E10|5.1382989744121|169|

2. **Market Performance and Analyst Sentiments**:
- The stock has experienced fluctuations, with a recent closing price of $441.49, representing a decrease of 0.18%.
- Lockheed Martin has been rated as a "Hold" by the Zacks Rank, indicating a neutral stance on the stock.
- Melius Research downgraded the stock from "Buy" to "Hold" due to increasing competition and geopolitical shifts.
3. **Challenges and Uncertainties**:
- The company has faced competitive losses in securing key defense contracts, which could impact future growth.
- There are concerns about the sustainability of its gross profit margins, with challenging figures of 9.88%.
- The company's future growth prospects are becoming more uncertain due to these competitive pressures and geopolitical shifts.
4. **Strategic Position and Dividend History**: Despite these challenges, Lockheed Martin is a prominent player in the Aerospace & Defense industry, with a low beta indicating relative stability. The company has a history of dividend payments, with a current yield of 3%.
5. **Earnings Projections and Valuation**: Analysts project an upcoming earnings per share (EPS) of $6.42, representing a 1.42% increase year-over-year. The revenue for the upcoming quarter is estimated to be $17.74 billion, indicating a 3.19% increase from the previous year's same quarter. For the annual period, the Zacks Consensus Estimates anticipate earnings of $27.15 per share and revenue of $74.27 billion, signifying shifts of -4.64% and +4.55%, respectively, from the last year.
6. **Conclusion**: While Lockheed Martin has a strong market position and a history of dividend payments, the recent decline in net income and the impact of competitive pressures and geopolitical shifts suggest that its long-term earnings growth may be tempered. The company's ability to navigate these challenges and sustain its financial performance will be critical in determining its future growth prospects.