LM

Lockheed Martin Corporation stock research

Mar 26, 2023

FY2023 Q1

Lockheed Martin (LMT) Gross Margin — Quarter Ended Mar 26, 2023

Revenue decreased from the prior quarter but increased from the same quarter last year. Gross profit followed a similar pattern, while cost of revenue declined sequentially and was stable year-over-year, resulting in an improved gross margin compared to both periods.

Gross margin takeaway

Quarter ended Mar 26, 2023 · FY2023 Q1

Revenue decreased from the prior quarter but increased from the same quarter last year. Gross profit followed a similar pattern, while cost of revenue declined sequentially and was stable year-over-year, resulting in an improved gross margin compared to both periods.

  • The most notable factor was the change in cost of revenue relative to revenue. Cost of revenue declined more sharply than revenue from the prior quarter, and remained flat year-over-year while revenue grew, contributing to margin expansion.
  • Compared to the immediately preceding quarter, gross margin improved. Compared to the same quarter one year earlier, gross margin also improved.

Gross margin snapshot

The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.

Gross margin

13.5%

Gross profit

$2.0B

Revenue

$15.1B

Cost of revenue

$13.1B

Quarter-over-quarter change

n/a

Year-over-year change

+0.8 pts

Quarterly gross margin trend

A four-quarter view of the revenue and direct-cost bridge behind gross margin.

PeriodRevenueGross profitCost of revenueGross margin
Mar 26, 2023$15.1B$2.0B$13.1B13.5%

Quarterly comparisons

Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.

Previous-quarter change

Previous quarter unavailable

n/a

Year-over-year change

Mar 27, 2022

+0.8 pts

What the margin says

Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.

The most notable factor was the change in cost of revenue relative to revenue. Cost of revenue declined more sharply than revenue from the prior quarter, and remained flat year-over-year while revenue grew, contributing to margin expansion.

Compared to the immediately preceding quarter, gross margin improved. Compared to the same quarter one year earlier, gross margin also improved.

Monitor the trajectory of cost of revenue relative to revenue in future quarters.

LMT Gross Margin — Quarter Ended Mar 26, 2023