Lockheed Martin Posts 20% Profit Growth, Boosts Outlook

By EarningsFOXBusiness

Lockheed Martin 3Q earnings

Earnings HQ: FBN’s Diane Macedo breaks down Lockheed Martin’s third-quarter earnings report.

Lockheed Martin’s (NYSE:LMT) third-quarter profit soared 20.1% in spite of weaker sales and Pentagon budget cuts, spurring the world’s largest defense contractor to boost its earnings outlook for the year.

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While the company warned that revenue will likely tick lower in 2014 amid U.S budget cuts, Chief Financial Officer Bruce Tanner said on a conference call Tuesday the impact of March’s automatic sequestration cuts hasn’t been as bad as expected.

Lockheed Martin raised its earnings guidance to a profit of $9.40 to $9.70 a share, up from $9.20 to $9.50 a share. Its sales view for 2013 was trimmed slightly to $45 billion, compared to the $47.2 billion in total revenue last year.

In the latest period, the Bethesda, Md., company reported a profit of $873 million versus $727 million in the year-ago quarter. Per-share earnings rose to $2.66 from $2.21. The third quarter included a $23 million charge related to job cuts.

Earnings from continuing operations checked in at $2.57 a share, up from $2.21 a share and beating Wall Street estimates of $2.26.

Sales were down 4% at $11.35 billion, topping calls for $11.15.

Lockheed Martin saw weaker results in three of its smaller units, offset by 19% profit growth in its missiles business. The company’s aerospace unit logged roughly flat earnings.

Shares rallied 2.6% to $128.58 in early morning trading, adding to the stock’s 35.7% gain this year as of Monday’s close.