Benzinga | Jan 25, 2022 10:34AM EST

Lockheed Martin Q4 Earnings Surpass Street View

* Lockheed Martin Corp (NYSE:LMT) reported fourth-quarter FY21 net sales growth of 4.1% year-over-year to $17.73 billion, beating the consensus of $17.66 billion.

* EPS improved to $7.47 compared to $6.38 in 4Q20, beating the consensus of $7.15.

* The operating profit increased by 7.3% Y/Y to $2.46 billion, and the margin expanded by 41 bps to 13.8%.

* Aeronautics sales of $7.13 billion (+6.2% Y/Y); operating margin 11.5%, up by 70 bps, and backlog at the end of the quarter was $49.12 billion (-13.1% Y/Y).

* Missiles and Fire Control sales of $3.22 billion (+12% Y/Y); operating margin 13.6% up by 60 bps, and backlog at the end of the quarter was $27.02 billion (-7.4% Y/Y).

* Rotary and Mission Systems sales of $4.46 billion (+6% Y/Y); operating margin 10%, up 40 bps, and backlog at the end of the quarter was $33.7 billion (-7% Y/Y).

* Space net sales of $2.92 billion (-10% Y/Y); operating margin 10.5%, down by 90 bps, and backlog at the end of the quarter was $25.52 billion (+1.5% Y/Y).

* Lockheed Martin generated cash from operating activities for FY21 of $9.22 billion, compared to $8.18 billion a year ago.

* At the end of the quarter, the company's total backlog was $135.36 billion (-8% Y/Y).

* Lockheed Martin believes it is highly likely that the FTC will vote to sue to block the Aerojet Rocketdyne Holdings Inc (NYSE:AJRD) transaction and expects they will decide before January 27, 2022.

* FY22 Outlook: Lockheed Martin expects net sales of ~$66 billion versus the consensus of $66.3 billion. EPS of ~$26.70, above the consensus of $26.28.

* Price Action: LMT shares are trading higher by 0.77% at $376.22 on the last check Tuesday.