Lockheed Martin Corp. (NYSE: LMT), which has surpassed earnings estimates for the second quarter of its fiscal year, surged by more than 2 percent in Tuesday’s premarket trade.
Defense contractor reported a robust financial performance, exceeding Wall Street forecasts, as he benefited from geopolitical tensions, including the conflict in Ukraine.
Analysts had predicted $17.01 billion revenue with $6.54 earnings per share. The company exceeded these expectations by $18.1 billion and $7.11 adjusted earnings per share.
The revenue of $16.7 billion and the share price of $6.73 were higher than in previous years.
Upgraded guidance and strong quarterly results
Lockheed Martin released its quarterly report, which shows a profit total of $1.64 Billion. This is a decrease from the $1.7 Billion reported last year.
The Bethesda-based aerospace giant, which has its headquarters in Maryland, showed sales growth for all of its units despite this decline.
It has raised the company’s full-year forecast, predicting earnings per share of between $26.10 to $26.60. Revenue is expected to be up to $71.5 Billion by 2024.
The Street’s estimate of $26.28 per shares and $69.8 billion revenue is higher than the actual figure.
Lockheed Martin also allocated $850 millions to stock repurchases and $752 to dividends for the second quarter.
The stock has gained almost 14% from the low of mid-February, despite being down by 3% since it’s record high.
F-35 Program and Future Prospects
Jim Taiclet is the CEO of Lockheed Martin. He has highlighted the strong demand for defense technology from the company, especially the F-35, which continues to be a priority.
Backlog is approximately $160 Billion, which represents more than double the company’s annual revenues. This reflects the robust demand for advanced defense products. Lockheed Martin’s free cash flow was over $1.5 Billion at the end of the third quarter.
This report is timely, as NATO members continue to transfer F-16 fighter planes to Ukraine.
Lockheed Martin began delivering its TR-3-configured F-35s in this month. The company is committed to delivering 75-110 F35s by 2024.
Future outlook and market reaction
Lockheed Martin stock is currently rated “Hold” on Wall Street despite its impressive earnings report, and the positive changes to their guidance.
Investors are closely monitoring how future contracts and geopolitical events will impact the performance of the company and its stock value.
As new information becomes available, this post Lockheed Martin exceeds Q2 earning estimates amid strong demand for defence solutions could be updated.
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