RBC Capital Reiterates Outperform Following Lockheed Martin's (LMT) 4Q and Announced Leidos Combination
RBC Capital maintained an Outperform rating on Lockheed Martin (NYSE: LMT), and cut the price target to $244.00 (from $250.00), following the company's 4Q earnings report. Lockheed Martin posted 4Q15 EPS of $3.01, ahead of consensus at $2.94. In conjunction with the 4Q results, Lockheed announced that it is combining its IS&GS services division with Leidos, a smaller Fed IT company.
Analyst Robert Stallard commented, "Lockheed Martin posted 4Q15 EPS of $3.01, ahead of consensus at $2.94. Revenues and operating profits were both ahead of our forecasts, with the untouched Aeronautics division posting healthy 6% YoY revenue growth, but with the margin easing to 10.2% due to the higher proportion of F-35 sales. Impairment and restructuring charges in the quarter were partially offset by a 19.8% tax rate. The company ended the year with a $100bn backlog, and a book to bill of 1.09x."
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Shares of Lockheed Martin closed at $209.93 yesterday.