Lockheed Martin and Bank of New York Mellon released their third quarter earnings reports before opening bell this morning. Lockheed Martin posted earnings of $2.77 per share on $11.5 billion in revenue. Analysts had been expecting earnings of $2.72 per share on $11.14 billion in revenue.
Bank of New York Mellon posted earnings of 74 cents per share, a 16% increase from last year on an adjusted basis, on $3.8 billion in revenue, a 1% year over year increase, an 8% decline from last year. Analysts had been expecting earnings of 71 cents per share and $3.9 billion in revenue.
Lockheed Martin nudges guidance higher
Lockheed Martin’s Aeronautics division saw net sales rise to $3.9 billion from $3.5 billion last year, while its Information Systems and Global Solutions business saw net sales fall from $1.95 billion last year to $1.87 billion this year. The Missiles and Fire Control segment saw sales edge higher from $1.9 billion last year to $1.94 billion this year. The Mission Systems and Training segment saw revenue rose to $1.8 billion from $1.7 billion last year, while the Space Systems segment saw net sales fall slightly from $2 billion last year to $1.9 billion this year.
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Management also updated their guidance for the year. They now expect earnings of about $11.30 per share, which is at the high end of the guidance of between $11 and $11.30 per share provided in July. They continue to expect orders of between $43.5 billion and $45 billion but now expect net sales of about $45 billion, which was at the high end of the July guided range of between $43.5 billion and $45 billion. For next year, the defense contractor expects net sales to be “comparable” with this year and that total operating margins will be in the 11.5% range.
As of this writing, shares of Lockheed Martin were trading at $211.24 per share, which was just slightly higher than Monday’s closing price of $210.55 per share.
Bank of New York Mellon’s fee revenue slides
Bank of New York Mellon posted 93 cents per share in net income last year of 64 cents per share after adjusting for the Wing Hang Bank investment and the One Wall Street building. Fee revenue skidded by approximately 21% to $3.03 billion, and fees in the investment services division, which makes up the vast majority of the firm’s total revenue, fell 2%.
The bank recorded an increase in operating leverage of more than 370 basis points compared to last year. Asset servicing fees rose 3% to $1.1 billion, while clearing service fees increased 2% to $345 million. Issuer service fees fell 1% to $313 million, while treasury service fees fell 4% to $137 million. Investment management and performance fees fell 6% to $829 million. Foreign exchange revenue rose 17% to $180 million
Bank of New York Mellon had a book value per share of $32.59 and a tangible book value per share of $15.16 as of the end of the quarter. The firm had $1.63 trillion in assets under management as of the end of the quarter, which is flat with last year’s third quarter and a decline of 4% from the previous quarter. Management cited lower equity market values as the reason for the sequential decline. Net long term outflows were $5 billion, while short term outflows were $10 billion.
As of this writing, shares of Bank of New York Mellon were at $40.17 per share.