U.S. News

Lockheed Martin Profit Rises on Jet, System Sales


Lockheed Martin, the world's No. 1 defense contractor, Tuesday reported a greater-than-expected 34% rise in second-quarter profit, helped by higher revenue from its combat aircraft and electronic systems units and lower pension costs.

The company, which makes F-16 fighter jets, Patriot missiles, satellites and an array of government systems, also raised its full-year earnings and revenue forecast, citing higher projected sales from its space and aircraft units.

The Bethesda, Maryland, company reported quarterly earnings of $778 million, or $1.82 per share, compared with $580 million, or $1.34 per share, a year earlier.

Revenue rose 7% to $10.7 billion.

The results easily beat Wall Street's average earnings forecast of $1.52 per share, on revenue of $10.28 billion, according to Reuters Estimates.

Lockheed, which is the leading Pentagon supplier, ahead of Boeing and Northrop Grumman, also raised its forecast for full-year earnings to a range of $6.65 per share to $6.80 per share, up from a range of $6.20 to $6.35. That is above analysts' average forecast of $6.39 per share.

It also forecast full-year revenue of $41 billion to $41.75 billion. Analysts are expecting $41.1 billion, on average.