Lockheed’s net sales are up 5%, Lennox’s revenue jumps 32% in Q2

July 26, 2021 10:55 AM PDT | By Team Kalkine Media
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  • Lockheed Martin’s (NYSE: LMT) net sales grew by 5% year-over-year.
  • Lennox recorded 32% revenue growth; EPS was up 54%.
  • Lockheed generated US$1,268 million in cash from operations in the quarter.

US aerospace and defence company Lockheed Martin Corp (NYSE: LMT) reported a 5% growth in sales to US$17 billion YoY, while climate control solutions provider Lennox International, Inc.’s (NYSE: LII) revenue jumped 32% to US$1.24 billion YoY in the second quarter of 2021.

Despite positive reporting on Monday, the stocks were down in intraday trading. LMT was trading at US$368.58, down 3.20%, at 11:58 am ET. LII stock was trading at US$316.08, down 1.41%, at 8:22 am ET in the pre-market session.

Lockheed’s net earnings increased by 12% to US$1.815 million year-over-year. Its diluted earnings per share were US$6.52 against US$5.79 in the corresponding quarter of 2020.

Lennox’s revenue was US$1.24 billion, up 32% year-over-year in Q2. The company’s gross margin was 30.9%, lifted by productivity, higher volume, favorable price, and cost reductions.

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Source: Pixabay

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Lockheed is one of the largest defense contractors. It builds fighter aircraft. The company has a market capitalization of US$106 billion and a P/E ratio of 15.37. The dividend yield is 2.73%.

Its four business segments are Aeronautics, Missiles and Fire Control (MFC), Rotary and Mission Systems (RMS), and Space. Their revenues for the quarter are US$6,666 million, US$2,944 million, US$4,242 million, and US$3,177 million, respectively.

Aeronautics’ net sales increased by 3% YoY, but operating profit decreased by 23% from the year-ago quarter. MFC’s sales rose 5% and operating profit increased by 8%. RMS and Space’s net sales jumped 5% and 10%, and operating profit rose 7% and 33%, respectively, YoY.

The company generated US$1,268 million in cash from operations in the quarter, a decline of US$914 million from US$2,182 million in the June quarter of 2020.

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Lennox provides energy-efficient climate control solutions for various indoor applications. Its market capitalization is US$12 billion and a P/E ratio of 28.86. The dividend yield is 1.15%.

Lennox’s adjusted EPS from continuing operations was up 54% to US$4.57.

Its residential heating and cooling segment revenue was US$ 838 million, up 30% YoY, and profit up 49% to US$190 million.

The commercial heating and cooling segment revenue was up 34% to US$253 million, and profit increased by 27% to US$45 million.

Revenue from the refrigeration segment was US$148 million, up 37%. Profits increased by 52% to US$14 million.

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Its net cash from operation increased 83% to US$ 192 million YoY, and free cash flow was US$171 million compared to US$87 million for the same quarter a year ago. The total liquidity reserves were US$47 million at the end of Q2.

LII has revised its revenue growth guidance from 7-11% to 11-15% at constant currency to 12-16% at actual currency.

Please note: The above constitutes a preliminary view and any interest in stocks/cryptocurrencies should be evaluated further from an investment point of view.


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