Lockheed Sees Better Times Ahead

Lockheed Martin (NYSE:LMT) reported third-quarter earnings Tuesday which beat Wall Street expectations and provided guidance that the company will finish the year strong.

The defense contractor raised its forecast for full-year 2018 earnings to about $17.50 a share, above Lockheed Martin's previously forecast range of $16.75 a share to $17.05 a share. Lockheed Martin expects revenue for 2018 to come in at $53 billion, at the top end of its earlier forecast.

The company also provided an early forecast for 2019, saying it expects revenue to climb 5-6% compared to 2018.

"The preliminary outlook for 2019 assumes the U.S. Government continues to support and fund the corporation's key programs," Lockheed Martin said in the report.

Lockheed Martin beat Wall Street's earnings per share expectation by 83 cents with adjusted third-quarter earnings of $5.14 a share. The contractor's revenue of $14.32 billion in the third quarter was also better than expected, with Lockheed Martin reporting about 16% more revenue compared to $12.34 billion during the same period in 2017.

The stock is up slightly this year, rising about 1.8% so far as of Monday's close of $326.78 a share. The shares descended $4.26, or 1.3%, Tuesday to $322.62