Lockheed Martin posts better-than-expected earnings
Lockheed Martin, the Pentagon's largest supplier, beat analysts' forecasts on Tuesday with a 10 percent rise in second-quarter earnings and lifted its full-year profit forecast.
Its share prices rose Tuesday after the earnings report. (Click here for the latest price.)
Lockheed, which builds F-35 fighter jets, Aegis missiles and new coastal warships, reported net earnings of $859 million, up from $781 million a year earlier. Earnings per share rose to $2.64 from $2.38.
Revenues fell about 4 percent to $11.4 billion. Analysts polled by Thomson Reuters had expected earnings of $2.20 per share on revenue of $11.1 billion.
"Overall, we had strong operational performance and program execution across all business areas this quarter, enabling us to increase 2013 financial guidance for operating profit, earnings per share and cash from operations," Chief Executive Marillyn Hewson said in a statement.
Lockheed said it now expects earnings per share of $9.20 to $9.50 in the full year, up 4 percent from its guidance in April. The company left its revenue forecast unchanged at $44.5 to $46 billion.
Revenue was down or flat in four of its five operating units in the second quarter. The exception was missiles and fire control, where sales rose 11 percent.
Operating profit was lower in aeronautics, information systems and space business units, but grew significantly in missiles and fire control and mission systems.
Lockheed said its Missions Systems and Training division lifted its operating profit by $80 million, or 41 percent.
Meanwhile, Hewson said the company is making "good progress" in negotiations with the Pentagon about the next two batches of F-35s and hopes to close a deal in the near term. Lockheed is building three models of the F-35 for the U.S. military and eight international partner countries—Britain, Australia, Canada, Norway, Turkey, Italy, Denmark and the Netherlands.
—By Reuters with CNBC.com.