Lockheed Martin beats Wall Street expectations, boosts earnings guidance for 2016
by July 19, 2016 9:34 am 83 views
One year after completing the acquisition of Black Hawk helicopter maker Sikorsky Aircraft from United Technologies, Lockheed Martin on Tuesday (July 19) reported that second quarter profits had topped $1 billion as the nation’s largest defense contractor also upped its yearly profit and sales forecast.
For the period ended June 30, the Bethesda, Md.-based defense contractor reported net earnings in the second quarter of 2016 were $1 billion, or $3.32 per share, compared to $929 million, or $2.94 per share, in the second quarter of 2015. Lockheed Martin sales jumped 11.2% to $12.9 billion, compared to $11.6 billion in the second quarter of 2015.
Lockheed Martin easily beat Wall Street expectations of $2.93 on sales of $12.56 billion, according to a 16 analysts surveyed by Thomson Reuters. The strong second quarter earnings result and improved profit forecast lifted the defense giant’s shares to a 52-week high in Tuesday’s early trading session on the New York Stock Exchange.
“The Corporation achieved exceptional operational and financial results in the second quarter,” said Lockheed Martin Chairman, President and CEO Marillyn Hewson. “Our strong performance enabled us to increase our financial guidance for sales, profit, earnings per share and cash from operations, and positions the company to deliver more value to our customers and shareholders.”
In addition to the company’s overall strong performance, Lockheed Martin said net sales for the Missile Fire and Control (MFC) division, which includes the company’s industrial facility in Camden, increased $31 million, or 2%, compared to the same period in 2015. The increase was attributable to higher net sales of approximately $60 million for fire control programs due to increased deliveries to U.S. special forces units and nearly $35 million for air and missile defense programs.
However, operating profit in the second quarter fell by $40 million, or 14% when compared to the same period in 2015. The decrease was partly attributable to lower operating profit of approximately $15 million for air and missile defense programs primarily due to a reserve for contractual matters, company officials said.
Lockheed Martin, which unveiled its new Black Hawk military gunship and announced plans to compete for the U.S. Army’s new radar program at last week’s Farnborough International Airshow in London, also upped its yearly profit and sales forecast to $5.3 billion and $51.5 billion, respectively.
In Tuesday session on Wall Street, Lockheed Martin shares (NYSE: LMT) were up 2.68%, or 6.95 at $263.19. The defense giant’s stock has traded in the range of $181.91 and $263.26 over the past year.