Lockheed Martin Corporation ( LMT ) shares are higher Wednesday after multiple analysts raised their price targets following the company’s second-quarter earnings.

What Happened: The aerospace and defense giant reported earnings per share (EPS) of $7.11 for Q2 2024, surpassing analysts’ expectations of $6.46. Additionally, revenue for the quarter reached $18.122 billion, exceeding the anticipated $17.044 billion.

Earnings Highlight

Revenue Growth: Consolidated revenue rose by 8.6%, surpassing both internal estimates and market consensus by 6.3%.

F-35 Program: Lockheed Martin ( LMT ) delivered 10 F-35 aircraft in July alone, with six featuring the TR-3 update and four with the TR-2 configuration. The company continues to project between 75 to 110 F-35 deliveries for 2024.

MFC Margins: Margins within the Missiles and Fire Control (MFC) segment provided an upside surprise. Despite recognizing only $100 million of the $325 million expected losses for the first half of 2024, the segment’s cost pressures suggest a potential margin decrease in the second half of the year.

Guidance and Outlook: Lockheed Martin ( LMT ) raised its 2024 guidance, increasing revenue projections by $1.75 billion and segment operating income by $175 million. Adjusted EPS guidance was also raised by $0.35 at the midpoint, though free cash flow expectations remain unchanged.

Analyst Reactions: Several analysts have responded positively to Lockheed Martin's ( LMT ) second-quarter results, revising their price targets and ratings:

TD Cowen: Upgraded Lockheed Martin ( LMT ) from Hold to Buy, raising the price target from $480 to $560.

Susquehanna: Maintained a Positive rating, increasing the price target from $540 to $565.

UBS: Kept a Neutral rating, raising the price target from $511 to $538.

Wells Fargo: Maintained an Equal-Weight rating, increasing the price target from $483 to $525.

RBC Capital: Held a Sector Perform rating, adjusting the price target from $470 to $500.

Deutsche Bank: Maintained a Hold rating, raising the price target from $487 to $540.

Price Action: Lockheed Martin’s shares climbed to $514.86, up by 2.71% according to Benzinga Pro.

See Also:

What’s Going On With Lululemon Stock?