Analyst Note| Krzysztof Smalec, CFA |
Wide-moat-rated Lockheed Martin reported solid third-quarter results as the company continues to grapple with persistent supply chain headwinds and a tumultuous geopolitical environment. Sales of $16.6 billion modestly missed FactSet consensus, while adjusted EPS of $6.87 outpaced consensus by 3%. Management reaffirmed 2022 guidance amid strong domestic and international demand, with geopolitical turmoil stoking an increase in backlog. However, management acknowledged the slow abatement of supply constraints, leading to a flat 2023 sales guide. We have maintained our $447 fair value estimate as we believe our long-term thesis remains intact.