Lockheed Martin Corporation stock research
FY2023 Q4
Lockheed Martin (LMT) Gross Margin — Quarter Ended Dec 31, 2023
Revenue was higher than the previous quarter but lower than the same quarter a year earlier. Gross profit increased sequentially and was stable year-over-year, while gross margin improved slightly compared to both periods.
Gross margin takeaway
Quarter ended Dec 31, 2023 · FY2023 Q4
Revenue was higher than the previous quarter but lower than the same quarter a year earlier. Gross profit increased sequentially and was stable year-over-year, while gross margin improved slightly compared to both periods.
- The gross margin improvement was accompanied by a cost of revenue that grew less than revenue sequentially and declined year-over-year, supporting a higher margin relative to both prior periods.
- Compared to the prior quarter, revenue and cost of revenue both increased, but gross profit rose at a faster pace, leading to a slightly higher gross margin. Versus the year-ago quarter, revenue and cost of revenue both decreased modestly, while gross profit remained unchanged, resulting in a marginally improved gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
12.2%
Gross profit
$2.3B
Revenue
$18.9B
Cost of revenue
$16.6B
Quarter-over-quarter change
+0.0 pts
Year-over-year change
+0.0 pts
Quarterly gross margin trend
A four-quarter view of the revenue and direct-cost bridge behind gross margin.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Mar 26, 2023 | $15.1B | $2.0B | $13.1B | 13.5% |
| Jun 25, 2023 | $16.7B | $2.1B | $14.6B | 12.5% |
| Sep 24, 2023 | $16.9B | $2.0B | $14.8B | 12.1% |
| Dec 31, 2023 | $18.9B | $2.3B | $16.6B | 12.2% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Sep 24, 2023
+0.0 pts
Year-over-year change
Dec 31, 2022
+0.0 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The gross margin improvement was accompanied by a cost of revenue that grew less than revenue sequentially and declined year-over-year, supporting a higher margin relative to both prior periods.
Compared to the prior quarter, revenue and cost of revenue both increased, but gross profit rose at a faster pace, leading to a slightly higher gross margin. Versus the year-ago quarter, revenue and cost of revenue both decreased modestly, while gross profit remained unchanged, resulting in a marginally improved gross margin.
Monitor the trajectory of cost of revenue relative to revenue in future quarters to assess whether the margin improvement can be sustained.