Lockheed Martin released the earnings results from its first fiscal quarter before opening bell this morning, posting net earnings of $2.74 per share on revenue of $10.1 billion. Analysts had been expecting earnings of $2.50 per share on $10.2 billion in revenue. In the same quarter last year, the defense contractor reported earnings of $2.87 per share on sales of $10.7 billion.
Key metrics from Lockheed Martin’s earnings report
Lockheed Martin’s Aeronautics segment saw net sales fall 7% year over year to $3.134 billion in the first quarter due to lower sales of the C-130 program. The defense contractor’s Information Systems and Global Solutions business recorded a decline of 2% in net sales, which fell to $1.869 billion due to lower sales from the wind-down of some of its programs, including the Persistent Threat Detection System.
The company’s Missiles and Fire Control segment saw sales decline 19% to $1.503 billion due to lower sales of some of its missiles, including the Hellfire, Joint Air-to-Surface Standoff Missiles and Guided Multiple Launch Rocket System. Lockheed Martin’s Mission Systems and Training business saw a 1% increase in sales to $1.651 billion due to the beginning of new programs, mainly the Space Fence program.
Lockheed Martin recorded a 5% increase in sales for its Space Systems segment due to higher sales in the Orion program.
Merillyn Hewson, President and CEO of Lockheed Martin, said in a statement: “Our team continues to deliver solid performance for our customers and strong results for our shareholders. We remain focused on successfully competing in the global marketplace and delivering industry-leading affordable products and technologies to our customers.”
Lockheed Martin raises guidance
The company reaffirmed its previously provided revenue guidance of between $43.5 billion and $45 billion for the full year. Lockheed Martin also increased its earnings per share guidance from between $10.80 and $11.10 per share to between $10.85 and $11.15 per share.
The defense contractor repurchased 3 million shares for a total of $604 million during the first quarter, compared to last year’s 7 million shares for $1.1 billion. Lockheed Martin also paid $498 million in cash dividends during the quarter and issued $2.25 billion worth of notes during the first quarter.