Summary
Management revised full year guidance upwards, as they typically under-promise and over-deliver.
I updated my DCF model to reflect increasing profitability in the Aeronautics and MFC business lines and derived a higher price per share.
Turkey's F-35B order is at risk and under review by the Pentagon. Lawmakers temporarily blocked the sale of 100 jets.
Lockheed Martin (LMT) reported 2nd quarter earnings and revised guidance up on both revenue and net income. The company is performing in all business segments and showing strength in aeronautics and missiles and fire control business lines. The record financial results make for an attractive opportunity in Lockheed Martin stock, as management continues to deliver operational excellence and while increasing revenue/earnings
The F-35 program is showing signs of maturation and cost savings, while contributing to roughly 25% of revenues. NATO members are starting to take delivery of the jet and production is increasing rapidly. The program will come into focus throughout the rest of 2018 and influence the company's ability to meet or beat their earnings guidance.
