Lockheed Martin Corporation stock research
FY2024 Q3
Lockheed Martin (LMT) Gross Margin — Quarter Ended Sep 29, 2024
Revenue decreased from the preceding quarter but increased from the same quarter last year. Gross profit held steady sequentially and rose year over year, while cost of revenue moved in line with revenue, resulting in an improved gross margin compared to both periods.
Gross margin takeaway
Quarter ended Sep 29, 2024 · FY2024 Q3
Revenue decreased from the preceding quarter but increased from the same quarter last year. Gross profit held steady sequentially and rose year over year, while cost of revenue moved in line with revenue, resulting in an improved gross margin compared to both periods.
- The gross margin improvement was accompanied by a decline in cost of revenue that allowed gross profit to remain stable despite lower sequential revenue. This relationship between cost of revenue and revenue was the most observable factor in the margin change.
- Compared to the preceding quarter, revenue was lower and cost of revenue was lower, while gross profit was unchanged, leading to a higher gross margin. Compared to the same quarter last year, revenue and cost of revenue were both higher, but gross profit increased more, resulting in a higher gross margin.
Gross margin snapshot
The selected quarter's reported revenue, gross profit, direct costs, and margin comparisons.
Gross margin
12.4%
Gross profit
$2.1B
Revenue
$17.1B
Cost of revenue
$15.0B
Quarter-over-quarter change
+0.6 pts
Year-over-year change
+0.2 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 |
|---|---|---|---|---|
| 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% |
| Sep 29, 2024 | $17.1B | $2.1B | $15.0B | 12.4% |
Quarterly comparisons
Compare the selected margin with the preceding quarter and the same fiscal quarter one year earlier.
Previous-quarter change
Jun 30, 2024
+0.6 pts
Year-over-year change
Sep 24, 2023
+0.2 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 decline in cost of revenue that allowed gross profit to remain stable despite lower sequential revenue. This relationship between cost of revenue and revenue was the most observable factor in the margin change.
Compared to the preceding quarter, revenue was lower and cost of revenue was lower, while gross profit was unchanged, leading to a higher gross margin. Compared to the same quarter last year, revenue and cost of revenue were both higher, but gross profit increased more, resulting in a higher gross margin.
Monitor the company's exposure to costs incurred in excess of funds obligated on contracts, as noted in the liquidity discussion, which could affect future cost of revenue.