BETHESDA, Md. (AP) _ Lockheed Martin Corp. (LMT) on Tuesday reported third-quarter net income of $1.47 billion.
The Bethesda, Maryland-based company said it had net income of $5.14 per share.
The results surpassed Wall Street expectations. The average estimate of eight analysts surveyed by Zacks Investment Research was for earnings of $4.32 per share.
The aerospace and defense company posted revenue of $14.32 billion in the period, which also beat Street forecasts. Five analysts surveyed by Zacks expected $13.14 billion.
Lockheed expects full-year earnings to be $17.50 per share, with revenue expected to be $53 billion.
“Our team achieved another quarter of strong growth leading us to improve our expectations for our full-year financial results,” said Lockheed Martin Chairman, President and CEO Marillyn Hewson. “As we look ahead to 2019, we remain focused on providing innovative, essential solutions to customers, and continuing to generate growth and long-term value for shareholders.”
Aeronautics’ net sales in the third quarter of 2018 increased $926 million, or 20 percent, compared to the same period in 2017. The increase was primarily attributable to an increase of approximately $655 million for the F-35 program due to increased volume on production and sustainment, partially offset by lower volume on development activities; about $105 million for other programs due to higher volume (primarily advanced development programs (ADP)); about $70 million for the F-16 program due to increased volume on modernization contracts; and about $50 million for the F-22 program due to increased sustainment volume.
Aeronautics’ operating profit in the third quarter of 2018 increased $87 million, or 17 percent, compared to the same period in 2017. Operating profit increased approximately $155 million for the F-35 program primarily due to increased volume on higher margin production contracts and new development activities, better performance on sustainment, and higher risk retirements on production contracts. This increase was partially offset by a decrease of about $50 million for the F-16 program due to lower risk retirements. Adjustments not related to volume, including net profit booking rate adjustments, were about $10 million lower in the third quarter of 2018 compared to the same period in 2017.
Lockheed’s Mission and Fire Control’s net sales in the third quarter of 2018 increased $316 million, or 16 percent, compared to the same period in 2017. The increase was primarily attributable to higher net sales of approximately $295 million for tactical and strike missiles programs due to increased volume (primarily classified programs and precision fires) and about $115 million for sensors and global sustainment programs due to increased volume (primarily LANTIRN, SNIPER, and Apache). These increases were partially offset by a decrease of approximately $75 million for integrated air and missile defense programs due to lower volume (primarily Terminal High Altitude Area Defense (THAAD)).
MFC’s operating profit in the third quarter of 2018 increased $34 million, or 11 percent, compared to the same period in 2017. Operating profit increased approximately $55 million for sensors and global sustainment programs due to increased risk retirements and increased volume (primarily LANTIRN, SNIPER, and Apache); and about $45 million for tactical and strike missiles programs due to reserves which were recorded in 2017 but did not recur in 2018 (primarily Joint Air-to-Ground Missile (JAGM)) and higher volume (primarily precision fires). These increases were partially offset by a decrease of approximately $50 million for integrated air and missile defense programs due to lower volume and lower risk retirements (primarily THAAD). Adjustments not related to volume, including net profit booking rate adjustments, were about $90 million higher in the third quarter of 2018 to the same period in 2017.
Lockheed shares have climbed roughly 2 percent since the beginning of the year, while the Standard & Poor’s 500 index has climbed 3 percent. The stock has climbed 2 percent in the last 12 months.
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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