Lockheed Martin’s stock hits 52-week high on fighter jet, helicopter sales

by Talk Business & Politics staff ([email protected]) 172 views 

Defense giant Lockheed Martin’s stock hit a 52-week high on Tuesday after the defense giant raised its year sale guidance based on robust revenue from F-35 fighter jet productions and sales from its recently acquired Sikorsky helicopter unit.

Still, for the period ended March 31, Lockheed reported first quarter earnings of $794 million, or $2.58 per share, down 9.6% from $878 million, or $2.74 per share, in the first quarter of 2015. The Bethesda, Maryland-based defense giant saw revenue of $11.7 billion in the three-month period, up a robust 16% from $10.1 billion a year ago.

Despite the lower quarter profits, the nation’s largest defense contractor was just penny off Wall Street of $2.59 per share on revenue of $11.3 billion, according to a survey of analysts by Thomson Reuters.

“We achieved strong operational and financial results this quarter and took actions to further strengthen our competitive and strategic position in the market,” said Lockheed Martin Chairman, President and CEO Marillyn Hewson. “We’re confident that these actions will increase value for both our customers and stockholders.”

In Lockheed Martin’s Missile and Fire Control (MFC) division, which includes the company’s tactical missile and rocket manufacturing operations in East Camden, the company reported net sales in the first quarter of $1.4 billion, up $51 million, or four percent, compared to the same period in 2015. However, MFC’s operating profit in the first quarter of 2016 fell by $65 million, or 23%, compared to the same period in 2015.

In an update of its yearly guidance, the defense contracting conglomerate with a market value of more than $70 billion now sees 2016 earnings per share of $11.50-$11.80, up from a prior outlook of $11.45-$11.75 issued in January. Lockheed also boosted its revenue forecast to $49.6 billion-$51.1 billion from a prior outlook of $49.5 billion-$51 billion. Wall Street analysts has forecasted $50.3 billion.

In trading Tuesday, Wall Street cheered the defense giant’s earning report as the company’s shares skyrocketed to a yearly high before settling at the closed bell at $232.16, up 2.6% or $5.86 per share on the New York Stock Exchange. In the past year, Lockheed Martin’s stock has traded in the range of $181.92 on the low end and Tuesday’s midday session high of $232.22.