Lockheed Martin Corporation (LMT) has reported its fourth-quarter 2023 earnings, surpassing expectations and showing strong performance amidst challenging market conditions. The aerospace and defense company reported adjusted earnings of $7.90 per share, beating the Zacks Consensus Estimate of $7.26 by 8.8%. This represents a 1.4% improvement from the same quarter of the previous year.

The company's GAAP earnings for the quarter stood at $7.58 per share, compared to $7.40 in the same period last year. Net sales for the fourth quarter were $18.87 billion, exceeding the Zacks Consensus Estimate of $17.98 billion by 4.9%. However, there was a slight decline of 0.6% from the year-ago quarter's reported figure of $18.99 billion.

For the full year 2023, Lockheed reported adjusted earnings of $27.82 per share, surpassing the Zacks Consensus Estimate of $27.24 by 2.1%. The annual net sales amounted to $67.57 billion, which beat the Zacks Consensus Estimate of $66.68 billion by 1.3%. Compared to the previous year, this represents a 2.4% increase in top-line growth.

Lockheed's backlog as of December 31, 2023, was reported to be $160.57 billion, reflecting a slight increase compared to the previous quarter's backlog of $156.03 billion. The company's Aeronautics segment contributed $60.16 billion, followed by Rotary and Mission Systems with $37.73 billion, Missiles and Fire Control with $32.23 billion, and Space Systems with $30.46 billion.

Despite a decline in sales from the F-35 program, the Aeronautics segment achieved sales of $7.61 billion. The segment's operating profit declined to $761 million, with an operating margin of 10%. Similarly, the Missiles and Fire Control segment reported a decrease in quarterly sales to $3.17 billion, primarily due to supplier cost timing on PAC-3 missiles. The segment's operating profit stood at $395 million, with an operating margin of 12.5%.

On a positive note, the Space Systems segment saw sales growth of 3.5% year over year, reaching $3.38 billion, driven by higher sales from strategic and missile defense programs. The segment's operating profit increased to $307 million, with an operating margin of 9.2%. The Rotary and Mission Systems segment experienced a decline in quarterly revenues to $4.71 billion, mainly attributed to lower sales from integrated warfare systems and sensors programs. Despite this, the segment's operating profit rose to $579 million, with an operating margin of 12.3%.

Looking ahead to 2024, Lockheed has provided its financial guidance, expecting revenues in the range of $68.50 billion to $70.00 billion, with earnings per share (EPS) projected to be between $25.65 and $26.35. The company also expects to generate free cash flow of $6.00 billion to $6.30 billion during the year.

In related news, Textron (TXT) is scheduled to declare its fourth-quarter 2023 results on January 24, while The Boeing Company (BA) is set to release its financial report on January 31. Northrop Grumman (NOC) is also expected to report its fourth-quarter results on January 25.

Lockheed Martin's strong performance in the fourth quarter and its optimistic outlook for 2024 demonstrate its resilience in a challenging market, positioning the company as a key player in the aerospace and defense industry.