Lockheed Martin Revenue Soars, and It Boosts Guidance
26 October 2016 - 12:50AM
Dow Jones News
Lockheed Martin on Tuesday reported that its revenue surged more
than expected in the latest quarter as it completed the sale of its
information systems and global solutions business.
The security and aerospace company also boosted its quarterly
dividend 10% to $1.82 per share and increased its share repurchase
program by $2 billion.
During the most recent period, revenue in Lockheed Martin's
aeronautics business—its biggest—rose 6.8% to $4.19 billion on
higher F-35 sales. Meanwhile, revenue in its mission systems
segment surged 55% thanks to the addition of helicopter maker
Sikorsky Corp., which it bought last year. Performance in those two
segments offset more tepid sales in the company's IT and space
systems businesses.
In all for the September quarter, Lockheed reported a profit of
$2.4 billion, or $7.93 a share, up from $865 million, or $2.77
share, a year earlier. Revenue shot up 15% to $11.55 billion,
topping analyst estimates for $11.45 billion.
Maryland-based Lockheed has been working to reshape its business
as it looks to focus on more profitable work building military
jets, helicopters and missiles. Last year Lockheed bought Sikorsky
for $9 billion, and it said earlier this year that it would divest
its big government information-technology unit and merge it with
Leidos Holdings Inc., a deal the company said Tuesday closed Aug.
16. As part of the transaction, Lockheed Martin reduced its share
count by about 3% or 9.4 million shares.
The company also updated its guidance for the year excluding
that business. Lockheed Martin now expects earnings of about $12.10
a share on revenue of $46.5 billion. It previously forecast $11.15
to $11.45 a share on $45 billion to $46.2 billion in sales.
Including the business, Lockheed had forecast $12.15 to $12.45 in
earnings per share, up on $50 billion to $51.5 billion in revenue
this year.
Shares, inactive premarket, have risen 6.9% so far this
year.
Write to Anne Steele at Anne.Steele@wsj.com
(END) Dow Jones Newswires
October 25, 2016 09:35 ET (13:35 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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