Analyst Note
| Burkett Huey, CFA |Lockheed Martin delivered top- and bottom-line declines in the first quarter as it lapped difficult comparisons, but we think the macro environment has shifted favorably as a result of increased geopolitical tension. Sales of $15.0 billion missed FactSet consensus by 3.7% and earnings per share of $6.11 beat the same estimates by 5.4%. After increasing our top-line estimates in the later years of our forecast to reflect our assumptions of higher defense spending, we’re increasing our fair value estimate to $445 per share from $419.