×

Lockheed Martin's quarterly revenue up 6.6 percent

  • Lockheed Martin posted lower-than-expected sales and said operating margins at three of its business divisions fell.
  • Revenue from the company's aeronautics business increased 8 percent to $4.11 billion, led by higher F-35 fighter jet sales.
  • Lockheed raised its 2017 net sales forecast range to $49.5 billion to $50.7 billion, from $49.4 billion to $50.6 billion.

Lockheed Martin’s T-50A jet trainer, the company’s submission for the U.S. Air Force’s T-X advanced pilot training program.
Source: Lockheed Martin
Lockheed Martin’s T-50A jet trainer, the company’s submission for the U.S. Air Force’s T-X advanced pilot training program.

Lockheed Martin, whose F-35 fighter jet program has been under presidential spotlight for being too expensive, posted lower-than-expected quarterly sales and said operating margins at three of its business divisions fell.

Shares of the Pentagon's No. 1 weapons supplier fell 2.7 percent to $267.35 in premarket trading on Tuesday.

Operating margins in the aeronautics division, the company's largest, declined to 10.6 percent in the first quarter, from 11.1 percent a year earlier.

Operating margins at Lockheed's rotary and missions systems business, which makes the Sikorsky helicopters, more than halved to 3.5 percent.

Revenue from the company's aeronautics business increased 8 percent to $4.11 billion, led by higher F-35 fighter jet sales. The business accounted for about 37 percent of the company's total revenue in the quarter.

Lockheed also raised its 2017 net sales forecast range to $49.5 billion to $50.7 billion, from $49.4 billion to $50.6 billion.

The company's net sales rose 6.6 percent to $11.06 billion in the quarter ended March. 26, but missed analysts' average estimate of $11.23 billion.

Net earnings from continuing operations fell to $763 million from $806 million. The company's per-share earnings were unchanged at $2.61.

According to Thomson Reuters I/B/E/S, the company's adjusted earnings were $3.00 per share, above the average analyst estimate of $2.79.

Up to Monday's close, Lockheed's stock had risen 21.8 percent in the past 12 months, compared with a 13.51 percent decline in the S&P 500 index.