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Lockheed Martin Corporation Q2 Earnings: Shares Rise, Outlook Boosted

The Lockheed Martin Q2:F17 earnings report was released before opening bell this morning. The defense contractor posted earnings of $3.23 per share on $12.7 billion in revenue, compared to the consensus estimates of $3.11 per share and $12.4 billion in sales. In last year’s second quarter, the defense contractor reported $11.58 billion in sales and $3.32 per share in earnings.

Lockheed Martin Q2:F17 earnings
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Lockheed Martin Q2:F17 earnings

Lockheed Martin’s aeronautics sales grew to $5.23 billion from $4.38 billion in last year’s second quarter. The consensus had been looking for only $5.02 billion. The defense contractor said higher sales of F-35 aircraft boosted the segment’s results. Also sales of C-130 aircraft provided a favorable mix.

Space systems revenue rose to $2.4 billion from $2.22 billion last year. Consensus had been expecting $2.21 billion. Equity earnings from Space Systems, which mainly is from the United Launch Alliance, made up 18% of the segment’s total operating profits, compared to 35% in the year-ago quarter. The lower operating profit from ULA was mainly the result of “performance matters on certain commercial satellite programs,” the defense contractor said.

Missiles and fire control revenue fell to $1.64 billion from $1.68 billion a year ago; consensus had been expecting $1.76 billion. Lockheed Martin said lower sales in its air and missile defense programs as a result of lower deliveries for the Patriot Advanced Capability program and other programs drove the decline.

Rotary and mission systems sales increased to $3.4 billion from $3.3 billion last year. Analysts had been expecting $3.27 billion.

The defense contractor returned $1 billion to shareholders during the second quarter, including $500 million in share buybacks.

Lockheed Martin raises guidance

Lockheed Martin also boosted its full-year earnings guidance to between $12.30 and $12.60 per share from $12.15 to $12.45 per share. It also increased its full-year sales guidance to a range of $49.8 billion to $51 billion from $49.5 billion to $50.7 billion.

After the Lockheed Martin Q2:F17 earnings report was released, the company’s stock rose by as much as 2.26% to $295 in premarket trades this morning.