Lockheed Martin’s 3Q Results Beat Street’s Targets
by October 20, 2015 4:17 pm 102 views
Defense giant Lockheed Martin on Tuesday (Oct. 20) reported third quarter earnings of $2.77 per share, easily beating Wall Street expectations as the defense contractor awaits news of the Air Force long-range bomber contract worth $100 billion.
For the period ended the Sept. 30, Bethesda, Md.-based Lockheed Martin reported earnings in the third quarter of 2015 were $2.77 per share or $865 million, one penny better than $2.76 per share, or $888 million, in the third quarter of 2014.
Lockheed Martin reported third quarter sales of $11.5 billion, up 3.6% from $11.1 billion in the third quarter of 2014. Wall Street had expected the nation’s largest defense contractor to report third quarter profits of $2.72 cents per share on revenue $11.1, according to analysts surveyed by Thomson Reuters.
“Our strong operating results this quarter are a reflection of our corporate-wide focus on program execution and delivery of value to customers and shareholders,” said Lockheed Martin Chairman and CEO Marillyn Hewson. “As we look ahead to 2016, we will remain focused on performing with excellence and providing affordable and innovative solutions for our customers, while strategically positioning our business portfolio on the best path to long-term growth and value for the corporation.”
Lockheed Martin’s Missile Fire and Control (MFC) division, which include the company’s manufacturing operations in Camden, also saw a slight jump in sales and profit in the third quarter. According to company officials, MFC’s net sales for the third quarter of 2015 increased $30 million, or 2%, to $1.93 billion, up from $1.90 billion a year ago. The increase was primarily attributable to increased deliveries the company’s Lantirn and Sniper navigation and missile systems.
MFC’s operating profit of $336 million for the third quarter of 2015 was almost flat with $335 million in 2014. However, those results showed fewer deliveries of Lockheed Martin’s Guided Multiple Launch Rocket System that is produced at the company’s South Arkansas industrial site.
After losing a high-stakes bid for the $30 billion Joint Light Tactical Vehicle contract to Oskhosh Defense, Lockheed and partner Boeing Co. are now waiting to hear word from the Air Force on the $100 billion stealth bomber contract against California-based defense rival Northrop Grumman Corp.
For the stealth bomber Request for Proposal (RFP), the military is aiming to buy 80 to 100 of the stealth fighters at a cost of about $550 million each to replace its 50-year-old fleet of B-52 Stratofortresses. However, the budget is likely to exceed the $100 billion target because the production schedule and other details of the program are highly classified.
In the company’s second quarter conference call with Wall Street analysts, Lockheed Martin CFO Bruce Tanner said the company is in a good position to win the multibillion dollar stealth bomber contract.
In premarket trading ahead of Tuesday’s opening bell on the New York Stock Exchange, Lockheed Martin shares were trading at $210.64, down $3.65 at 1.73%.