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UPDATE 1-Lockheed Martin sales, profit miss Wall St estimates

(Adds detail on results and outlook, comparison with estimates, share reaction)

Oct 24 (Reuters) - Lockheed Martin Corp's quarterly profit and sales missed Wall Street estimates on Tuesday, sending shares down 1.6 percent, but the Pentagon's No. 1 weapons supplier raised its full-year sales forecast and set a higher dividend.

Lockheed's net earnings from operations fell 13.8 percent to $939 million, or $3.24 per share, from $1.1 billion, or $3.61 cents per share, in the same quarter last year.

Net sales rose to $12.2 billion from $11.6 billion a year ago.

Analysts had expected $3.26 per share on revenue of $12.81 billion, according to Thomson Reuters I/B/E/S data.

Operating profit from Lockheed's Space Systems business unit halved to $218 million from the same quarter last year, partly due to a non-recurring pre-tax gain in the third quarter of 2016, and slightly lower sales volume in two government satellite programs.

Still, the company increased its full-year 2017 sales forecast to $51.2 billion, from $50 billion, citing its continued focus on operational performance.

The company sees 2017 ending with diluted higher earnings per share between $12.85 and $13.15, up from its previous estimate of $12.30 to $12.60 per share. In addition, Lockheed said it would raise its quarterly dividend rate by 10 percent to $2.00 per share.

Lockheed forecast 2018 net sales would grow by 2 percent. (Reporting by Mike Stone in Washington, DC; Editing by Nick Zieminski)