Lockheed Descends Despite Earnings Beat

Lockheed Martin (NYSE:LMT) turned in second-quarter earnings on Tuesday that were above what Wall Street anticipated from the world’s largest defense contractor.

The company raised its 2019 forecast for both its top and bottom lines.

Lockheed Martin now expects full year earnings between $20.85 a share and $21.15 a share, with revenue expected between $58.25 billion and $59.75 billion.

Earnings per Share came in at $5.00 a share vs. the expected $4.77 a share, while revenue reached $14.4 billion, compared to the projected $14.2 billion.

All four of Lockheed’s business units – Aeronautics, Missiles and Fire Control, Rotary and Mission Systems and Space – delivered year-over-year increases in operating profit for this quarter. Lockheed CEO Marillyn Hewson reported the company’s order backlog grew "to a new record level," with $136.7 billion in total orders booked.

Lockheed, the U.S’s top defense contractor, also said trade policies or sanctions could impact business as well as the White House’s recent decision to suspend Turkey’s role in the F-35 program. Lockheed previously expected it would deliver 131 of the F-35 this year.

Said Hewson, "The corporation achieved another quarter of strong operational and financial results across all four of our businesses, which allowed us to grow our backlog to a new record level and to increase our financial outlook for 2019.
"Our team remains focused on driving growth, investing in innovative solutions, and creating long-term value for shareholders."

Shares slumped, however, $3.26 to $354.37