Lockheed Martin Corporation stock research
FY2024 Q2
Lockheed Martin (LMT) Gross Margin — Quarter Ended Jun 30, 2024
Revenue increased compared to both the prior quarter and the same quarter one year earlier. Gross profit was slightly higher than the prior quarter but unchanged from the year-ago period, while cost of revenue rose, leading to a gross margin that improved from the prior quarter but weakened relative to the prior year.
Gross margin takeaway
Quarter ended Jun 30, 2024 · FY2024 Q2
Revenue increased compared to both the prior quarter and the same quarter one year earlier. Gross profit was slightly higher than the prior quarter but unchanged from the year-ago period, while cost of revenue rose, leading to a gross margin that improved from the prior quarter but weakened relative to the prior year.
- The most notable observable driver is that gross profit remained unchanged from the year-ago quarter despite higher revenue, as cost of revenue also increased. Additionally, the filing indicates that the current quarter's cost of sales included impairment and severance charges.
- Compared to the immediately preceding quarter, revenue and cost of revenue both increased, gross profit improved modestly, and gross margin was slightly higher. Compared to the same quarter one year earlier, revenue was higher and cost of revenue was higher, while gross profit was unchanged, so gross margin was lower.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
11.8%
Gross profit
$2.1B
Revenue
$18.1B
Cost of revenue
$16.0B
Quarter-over-quarter change
+0.2 pts
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.
| Period | Revenue | Gross profit | Cost of revenue | Gross margin |
|---|---|---|---|---|
| Sep 24, 2023 | $16.9B | $2.0B | $14.8B | 12.1% |
| Dec 31, 2023 | $18.9B | $2.3B | $16.6B | 12.2% |
| Mar 31, 2024 | $17.2B | $2.0B | $15.2B | 11.6% |
| Jun 30, 2024 | $18.1B | $2.1B | $16.0B | 11.8% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Mar 31, 2024
+0.2 pts
Year-over-year change
Jun 25, 2023
-0.8 pts
What the margin says
Filing-constrained interpretation of margin direction, comparisons, and what to monitor next.
The most notable observable driver is that gross profit remained unchanged from the year-ago quarter despite higher revenue, as cost of revenue also increased. Additionally, the filing indicates that the current quarter's cost of sales included impairment and severance charges.
Compared to the immediately preceding quarter, revenue and cost of revenue both increased, gross profit improved modestly, and gross margin was slightly higher. Compared to the same quarter one year earlier, revenue was higher and cost of revenue was higher, while gross profit was unchanged, so gross margin was lower.
One concrete item to monitor is the recurrence of impairment and severance charges, which affected cost of revenue in the current quarter.