BETHESDA, Md. (AP) _ Lockheed Martin Corp. (LMT) on Oct. 22 reported third-quarter net income of $1.61 billion.
“The corporation achieved another quarter of strong growth and outstanding operational performance,” said Lockheed Martin Chairman, President and CEO Marillyn Hewson. “As we look ahead to 2020, we remain focused on providing innovative solutions for our customers, investing for long-term growth, and generating value for our shareholders.”
The Fort Worth-based Aeronautics unit’s net sales in the third quarter of 2019 increased $536 million, or 10 percent, compared to the same period in 2018. The increase was primarily attributable to higher net sales of approximately $480 million for the F-35 program due to increased volume on production, development and sustainment contracts and about $80 million for classified development programs due to higher volume.
Aeronautics’ operating profit in the third quarter of 2019 increased $65 million, or 11 percent, compared to the same period in 2018. Operating profit increased approximately $35 million for the F-16 program due to higher risk retirements on sustainment contracts, and about $20 million for the F-35 program due to increased volume on production, development, and sustainment contracts, partially offset by lower risk retirements. Adjustments not related to volume, including net profit booking rate adjustments and other matters, were comparable during the third quarter of 2019 compared to the same period in 2018.
Missiles and Fire Control’s net sales in the third quarter of 2019 increased $328 million, or 14 percent, compared to the same period in 2018. The increase was primarily attributable to higher net sales of approximately $200 million for tactical and strike missile programs due to increased volume (primarily precision fires and new hypersonic development programs); and about $120 million for integrated air and missile defense programs due to increased volume (primarily Patriot Advanced Capability-3 (PAC-3) and Terminal High Altitude Area Defense (THAAD)).
On a per-share basis, the Bethesda, Maryland-based company said it had profit of $5.66.
The results exceeded Wall Street expectations. The average estimate of seven analysts surveyed by Zacks Investment Research was for earnings of $5.03 per share.
The aerospace and defense company posted revenue of $15.17 billion in the period, also exceeding Street forecasts. Four analysts surveyed by Zacks expected $14.98 billion.
Lockheed expects full-year earnings to be $21.55 per share, with revenue expected to be $59.1 billion.
Lockheed shares have increased 43% since the beginning of the year, while the Standard & Poor’s 500 index has climbed 20%. The stock has climbed 14% in the last 12 months. – FWBP Staff contributed to this story.
This story was generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on LMT at https://www.zacks.com/ap/LMT