Lockheed Martin Beats Earnings Estimates

Alexander Boulden

Posted April 29, 2024

Lockheed Martin (NYSE: LMT) had a fantastic start to the year. It beat analyst Q1 expectations across the board.

Here are some highlights…

  • Revenue: $17.2 billion, up 14%
  • Net income: $1.55 billion, down 8.5%
  • Profit margin: 9%, down from 11%
  • Earning per share: $6.42, down from $6.63

According to Simply Wall Street, “Looking ahead, revenue is forecast to grow 2.4% on average during the next three years, compared to a 2.1% growth forecast for the aerospace and defense industry in the U.S.”

Lockheed Martin has a $110 billion market cap and pays a 2.75% dividend. It’s part of the dividend kings club, as it’s consistently raised its dividend for over 20 years.

Who would have thought?

The No. 1 defense contractor in the U.S. is profiting off proxy wars around the globe…

Yay?

Well, it’s obviously not that simple.

Lockheed Martin also contributes to our safety and well-being here in the U.S., not to mention it’s expanding its portfolio into the outer reaches of the universe.

That’s especially important when there’s talk of Russia working on a nuclear space weapon. Once detonated in space, it would effectively act as an EMP and take out satellites that we use for cellphones, internet, and even defensive purposes. It hasn’t been confirmed whether the rumors are true, but you know what they say: Where there’s smoke, there’s fire.

The fear I have is that the leaders in this world have lost their way. Once you allow (ahem, provoke) a country like Russia to take territory and start a war, it fuels that same type of behavior around the world.

We’ve seen it before throughout history…

Absolute power corrupts absolutely.

And that means here in the U.S. as well.

And there’s some crazy evidence to back this up.

Remember John Bolton? He was President Trump’s former national security adviser who’s getting a lot of attention in the mainstream media these days because he pencils in Dick Cheney for the presidency when he votes. He said he voted for Dick Cheney in 2020 and will do so again this year. He also repeatedly bashes Trump, so they love giving him a platform.

Back in 2019, Vox ran an eye-opening story about his departure from Trump’s cabinet:

When Bolton joined the administration in April 2018, the worry was that the arch nationalist hawk would convince the war-averse Trump to see the world as he did. Here was a guy who for decades called for bombing North Korea and Iran, exercising unilateral American power around the world, and cutting tethers to international institutions…

Despite Bolton’s best efforts, Trump pursued diplomatic talks with North Korea and resisted escalating tensions despite a resumption in missile tests over the last few weeks. And even after reimposing crushing sanctions on Iran, Trump repeatedly said he’d be willing to negotiate a “better” nuclear deal with the Islamic Republic’s top officials.

There’s little indication Trump wants to ignite another war in the Middle East despite his tough Iran stance. In fact, The Washington Post reported Tuesday that Bolton was “devastated” Trump chose not to attack Iran after it downed an American surveillance drone in June.

It goes to show that Trump is in control of the most important aspect of his foreign policy: whether or not to go to war.

Still, Trump has walked back every chance he’s had to escalate to the highest level of tensions with adversaries. That was always going to put Trump’s “America First” in conflict with Bolton’s “America Everywhere.”

This article paints a damning picture of Bolton and of previous U.S. foreign policy, mainly the support of regime-change wars. And it’s these wars that have pissed off the entire world. Still, it’s no excuse for violence.

Russel Brand talks about this situation article in a recent video.

Of Trump not going to war, he says, “Wouldn’t you argue that’s the most important aspect of the United States of America’s foreign policy? And maybe even domestic policy?”

He touches on how disingenuous our media are when he says, “It’s terrifying that the principles of justice are no longer blind but have one eye on a particular outcome when it comes to the election… It’s terrifying that the mainstream media don’t print all the news that’s fit to print but convey all the propaganda that makes sure it goes their way. It’s terrifying that an organization as vast and sprawling as Google is willing and able to manipulate outcomes in elections and create a news cycle for you that traps you in the very delirium that we have to awaken from.”

Well said.

The point is we are very much in a cycle of war.

And like or not, this is why defense stocks like Lockheed Martin have done so well. It’s the unfortunate reality of our times.

But Lockheed Martin is now considered an expensive stock, and has been for a while.

That’s why you need to look at smaller companies if you want to invest in the space.

Our defense expert Jason Simpkins has uncovered one tiny American firm that’s working with the FBI, CIA, and NSA to develop advanced AI technology.

It’s the most well-connected AI firm in the world…

This firm’s technology has already disrupted Syrian air defenses, destroyed an Iranian uranium facility, and thwarted cyberattacks on U.S. power plants.

Not to mention, Ukraine would not have made nearly as much progress repelling Russia’s invasion without this advanced AI tech.

Now this tiny AI defense firm is set to turn the tides of the Israel-Hamas war…

And hand its early investors as much as 10x their money.

Learn more about this small AI defense company before its stock soars.

Stay frosty,

Alexander Boulden
Editor, Wealth Daily

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After Alexander’s passion for economics and investing drew him to one of the largest financial publishers in the world, where he rubbed elbows with former Chicago Board Options Exchange floor traders, Wall Street hedge fund managers, and International Monetary Fund analysts, he decided to take up the pen and guide others through this new age of investing.

Alexander is the investment director of Insider Stakeout — a weekly investment advisory service dedicated to tracking the smartest money on the planet so that his readers can achieve life-altering, market-beating returns. He also serves at the managing editor for R.I.C.H. Report, a comprehensive service that uses the highest-quality investment research and strategies that guides its members in growing their wealth on top of preserving it.

Check out his editor’s page here.

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