Latest news with #EvanScott
Yahoo
14-05-2025
- Business
- Yahoo
Why Lockheed Martin Stock Plunged Midday Today
Lockheed Martin shares fell midday as its CFO was presenting at an industry conference. Investors appear to have been caught off guard by commentary about potential charges on a classified program and potential delays in F-35 cash inflows. Lockheed Martin could be a good choice for patient investors who are interested in income. 10 stocks we like better than Lockheed Martin › Shares of Lockheed Martin (NYSE: LMT) hovered around breakeven for most of the trading day on Wednesday before suddenly falling more than 3% around 1:30 p.m. ET. The timing coincided with management's appearance at an investor conference where cost pressures were discussed, which appears to have caught investors off guard. Lockheed Martin ranks as the world's largest pure-play defense contractor, with a diversified portfolio of planes, missiles, helicopters, and space systems. What the company lacks is a near-term growth catalyst following its loss to Boeing in the competition to produce the U.S. Air Force's next fighter jet. For now, Lockheed is more of an income stock whose investors can hope for future growth through what are now still classified programs. On Wednesday, Lockheed Martin chief financial officer Evan Scott spoke at a Bank of America industrial conference. During his talk, which coincided with the stock plunge, Scott made reference to incremental cost pressures on a classified aerospace program. In 2024, Lockheed Martin took more than $500 million in charges related to a classified aerospace program. The market appears to be interpreting the comments as a warning that further charges are coming this quarter. There was also a suggestion that cash inflows related to the F-35 could slip into the third quarter, which could make it difficult for Lockheed Martin to hit Wall Street second-quarter expectations. In one sense, charges are to be expected when one is dealing with bleeding-edge programs. And the F-35 second-quarter miss could work out fine for Lockheed in the long run if it means that the next two groups of purchases are made at the same time, which would provide clarity to the backlog. But Lockheed Martin hasn't given investors much to get excited about of late, and the news was understandably poorly received. For investors seeking a mix of modest long-term growth and income, Lockheed offers a 3% dividend yield and the potential for growth over time. But any hopes of a quick acceleration from here took a hit from Scott's comments. Before you buy stock in Lockheed Martin, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Lockheed Martin wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $613,951!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $796,353!* Now, it's worth noting Stock Advisor's total average return is 948% — a market-crushing outperformance compared to 170% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of May 12, 2025 Bank of America is an advertising partner of Motley Fool Money. Lou Whiteman has positions in Lockheed Martin. The Motley Fool has positions in and recommends Bank of America. The Motley Fool recommends Lockheed Martin. The Motley Fool has a disclosure policy. Why Lockheed Martin Stock Plunged Midday Today was originally published by The Motley Fool
Yahoo
14-05-2025
- Business
- Yahoo
Lockheed Martin anticipates sooner-than-expected F-35 award
(Reuters) -Lockheed Martin expects to be awarded a finalized contract on its F-35 jets, which have been beset by delays in a technology upgrade, sooner than it previously anticipated, the U.S. defense contractor's finance chief said on Wednesday. The fighter jets in lot 19 could potentially be awarded sooner than the second half of this year, which was the company's earlier timeline, newly appointed CFO Evan Scott said at a Bank of America conference. Lockheed's customer has told the company to expect lots 18 and 19 to be combined into a single contract, Scott added. The Pentagon, U.S. allies and partners are the primary customers for these lots of the F-35 jets. The F-35 program has been bogged by delays in rolling out an upgrade to give the jet better displays and processing capabilities for its electronic systems. Last month, Lockheed beat expectations for quarterly profit and reaffirmed its annual forecasts, buoyed by resilient demand for its missile systems and fighter jets.
Reuters
14-05-2025
- Business
- Reuters
Lockheed Martin anticipates sooner-than-expected F-35 award
May 14 (Reuters) - Lockheed Martin (LMT.N), opens new tab expects to be awarded a finalized contract on its F-35 jets, which have been beset by delays in a technology upgrade, sooner than it previously anticipated, the U.S. defense contractor's finance chief said on Wednesday. The fighter jets in lot 19 could potentially be awarded sooner than the second half of this year, which was the company's earlier timeline, newly appointed CFO Evan Scott said at a Bank of America conference. Lockheed's customer has told the company to expect lots 18 and 19 to be combined into a single contract, Scott added. The Pentagon, U.S. allies and partners are the primary customers for these lots of the F-35 jets. The F-35 program has been bogged by delays in rolling out an upgrade to give the jet better displays and processing capabilities for its electronic systems. Last month, Lockheed beat expectations for quarterly profit and reaffirmed its annual forecasts, buoyed by resilient demand for its missile systems and fighter jets.
Yahoo
14-05-2025
- Business
- Yahoo
Lockheed Martin anticipates sooner-than-expected F-35 award
(Reuters) -Lockheed Martin expects to be awarded a finalized contract on its F-35 jets, which have been beset by delays in a technology upgrade, sooner than it previously anticipated, the U.S. defense contractor's finance chief said on Wednesday. The fighter jets in lot 19 could potentially be awarded sooner than the second half of this year, which was the company's earlier timeline, newly appointed CFO Evan Scott said at a Bank of America conference. Lockheed's customer has told the company to expect lots 18 and 19 to be combined into a single contract, Scott added. The Pentagon, U.S. allies and partners are the primary customers for these lots of the F-35 jets. The F-35 program has been bogged by delays in rolling out an upgrade to give the jet better displays and processing capabilities for its electronic systems. Last month, Lockheed beat expectations for quarterly profit and reaffirmed its annual forecasts, buoyed by resilient demand for its missile systems and fighter jets. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
23-04-2025
- Business
- Yahoo
Lockheed has ‘mechanisms' to recover tariff impacts, new CFO says
This story was originally published on CFO Dive. To receive daily news and insights, subscribe to our free daily CFO Dive newsletter. Newly-minted Lockheed Martin CFO Evan Scott is 'comfortable' with the company's approach to mitigating tariff impacts, he said in an earnings call Tuesday. Scott also agreed with an analyst who asserted that the defense industry is more insulated from such impact than other industrial companies. As with many executives on calls in the wake of President Donald Trump's April 2 tariff barrage that has rocked financial markets, executives on the Bethesda, Maryland-based company Q1 call Tuesday addressed the levies' potential impact, with CEO Jim Taiclet asserting the company is well positioned in what he described as a 'dynamic' environment. The company also reaffirmed its 2025 financial outlook, with the caveat that it does not include 'evolving impacts of tariffs or related recoveries' and assumes the company's programs are funded by and at levels consistent with the full year Continuing Appropriations and Extensions Act of 2025 signed by Trump on March 15. The earnings call comes just days after Scott was named to succeed Jesus 'Jay' Malave, as the company's finance chief. Scott, who has been at Lockheed Martin for 26 years, took the role immediately, with Malave having advised the company that he was 'pursuing other opportunities.' The company reported sales rose 4% to $18 billion in the quarter year-over-year, with net earnings rising to $1.7 billion from $1.5 billion in the year-earlier quarter. 'The strong profit we realized in the first quarter provides an increased confidence in our ability to absorb currently estimated 2025 profit impacts from tariffs and the end-get announcement,' Scott said on the call. 'While it will take more time to complete a thorough business assessment of these dynamics, we're optimistic about achieving our profit targets for the year.' Scott also noted that the guidance includes several assumptions; for instance, the company continues to expect between 170 to 190 deliveries for its F-35 fighter jet production operation. Lockheed Martin also has a backlog of about 360 jets at the end of the last quarter, he noted. He also said the outlook assumes a certain level of tariff impact, and that the company expects to work closely with its customers to mitigate potential cost increases and offset cash timing pressures. On the call, he also said that in many cases the company would have 'direct protection in its supply chain' to avoid tariffs altogether, asserting 'for the vast majority of our external contracts, we've got mechanisms to recover impacts.' 'Is there going to be a lag between incurring a tariff cost and recovering those costs?' Scott asked on the call. 'So it's going to stay fluid, but we feel like we've got a good path now, and we'll just keep updated as that progresses throughout the year.'
