Lockheed Martin Boosts Guidance After Beating Quarterly Expectations
July 19 2016 - 7:40AM
Dow Jones News
By Lisa Beilfuss
Lockheed Martin further lifted its forecast for the year as the
military contractor logged higher F-35 jet fighter deliveries and
benefited from sales in its recently acquired Sikorsky helicopter
unit.
Maryland-based Lockheed, the world's largest military contractor
by revenue, has been working to reshape its business as it looks to
focus on more profitable work building military jets, helicopters
and missiles. Last year Lockheed bought helicopter maker Sikorsky
Corp. for $9 billion, and it said earlier this year that it would
divest its big government information-technology unit and merge it
with Leidos Holdings Inc., a deal the company said Tuesday is on
track to close in the third quarter.
At the same time, Lockheed has been working to fix glitches in
its F-35 jet program, which is due to enter service with the U.S.
Air Force by year-end. In its latest quarter, the company said
higher F-35 sales pushed revenue in its aeronautics business, its
biggest, up 5.9% to $4.38 billion. Meanwhile, revenue in its
mission systems segment surged 53% thanks to Sikorsky. Performance
in those two segments offset lower sales in the company's IT and
space systems businesses.
Overall, Lockheed reported a profit of $1.02 billion, or $3.32 a
share, up from $929 million, or $2.94 a share, a year earlier.
Revenue increased 11% to $12.91 billion.
According to Thomson Reuters, analysts anticipated $2.93 in
earnings per share on $12.55 billion in sales.
For the year, Lockheed now expects to report $12.15 to $12.45 in
earnings per share, up from an earlier prediction of $11.50 to
$11.80 a share. The company expects to log $50 billion to $51.5
billion in revenue this year, higher than its previous $49.6
billion to $51.1 billion forecast. Analysts had been looking for
$11.84 a share and $50.46 billion in sales.
Write to Lisa Beilfuss at lisa.beilfuss@wsj.com
(END) Dow Jones Newswires
July 19, 2016 08:25 ET (12:25 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Lockheed Martin (NYSE:LMT)
Historical Stock Chart
From Sep 2024 to Oct 2024
Lockheed Martin (NYSE:LMT)
Historical Stock Chart
From Oct 2023 to Oct 2024