Lockheed Martin Corporation, Procter & Gamble Co Post Solid Earnings

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Lockheed Martin and Procter & Gamble released their latest earning reports before opening bell this morning. Lockheed Martin reported earnings of $2.58 per share, missing consensus by a penny, on $11.7 billion in revenue, which came out significantly ahead of consensus at $11.34 billion. However, the earnings result includes items related to job cuts in the defense contractor’s Aeronautics and Information Systems & Global Solutions segments, which had a negative impact of 21 cents per share.

Procter & Gamble posted adjusted earnings of 86 cents per share for the third quarter of its fiscal 2016, beating the consensus at 82 cents, and $15.8 billion in revenue, which was in line with consensus.

Lockheed Martin raises guidance

Lockheed Martin said Aeronautics sales increased from $3.1 billion to $3.8 billion this year, while Information Systems & Global Solutions sales edged lower from $1.4 billion last year to $1.3 billion this year. Sales from the Missiles and Fire Control division edged higher from $1.38 billion to $1.43 billion, while Mission Systems and Training revenue more than doubled from $1.2 billion last year to $3 billion this year. Space Systems sales edged lower from $2.2 billion last year to $2.1 billion this year.

Lockheed Martin management expects full year earnings of $11.50 to $11.80 per share, against the consensus of $11.80 per share. However, the new guidance range is still an increase from the previous range of between $11.45 and $11.75 per share. The company also raised its sales outlook for the year to a range of $49.6 billion to $51.1 billion, against the previous projection of between $49.5 billion and $51 billion.

Shares of Lockheed Martin declined 0.56% to $225 in premarket trades.

Procter & Gamble sees sales decline in most segments

Procter & Gamble’s reported earnings increased 29% to 97 cents per share. The consumer products company said organic Beauty volumes declined 1% while sales increased 1%, and Grooming volumes declined 5% while sales fell 1%. Health Care volumes declined 2%, while sales declined 1%. The Fabric Care and Home Care segment was the best-performing division with a 2% increase in volumes and 3% increase in sales. The Baby, Feminine and Family Care segment recorded a 1% decline in volumes with sales coming in flat year over year.

The company also tightened its guidance for fiscal 2016 core earnings to an expected decline of 3% to 6% against last year’s core earnings of $3.76 per share. Procter & Gamble still expects constant currency core earnings to grow in the mid-single digits. Management warned that core earnings for the current quarter will be “significantly lower” compared to last year because they stepped up advertising, must pay a higher tax rate, and continue to fight currency headwinds.

Proctor & Gamble earnings declined 0.32% to $81.10 in premarket trading.

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