LMT - Lockheed Martin rises to record high after Q1 results beat estimates

2023-04-18 11:08:43 ET

Lockheed Martin ( NYSE: LMT ) on Tuesday rose as much as 3.8% to a record high of $508.10 a share after reporting Q1 results that beat the average estimates of Wall Street analysts.

The defense contractor’s revenue rose less than 1% from a year earlier to $15.1 billion, compared with the consensus estimate of about $15 billion. Adjusted earnings of $6.43 a share beat the estimate of $6.06.

The positive results come as the company expects revenue to decline this year as supply-chain constraints stand in the way of boosting output. Lockheed Martin estimated sales this year will be in a range of about $65 billion to $66 billion, compared with the consensus forecast of $65.67 billion. The company’s sales were $65.98 billion in 2022. Its EPS estimate of $26.60 to $26.90 for the year is in line with Wall Street’s estimate of $26.71.

Aeronautics, Missiles Decline

The company’s aeronautics revenue slipped 2% from the prior year to $6.27 billion, which was mostly attributed to a decline in net sales of $335 for the F-35 fighter jet program. The company has a growing backlog, having received an order from Canada for 88 of the fifth-generation aircraft during Q1.

Its missiles and fire control segment saw a 3% decline in net sales to $2.39 billion, including a drop of $60 million on lower output of the Guided Multiple Launch Rocket Systems (GMLRS), a long-range missile that the United States has supplied to Ukraine to defend itself against Russia’s invasion.

Lockheed Martin ( LMT ) is among the defense companies that have received contracts since the war in Ukraine began more than a year ago, but some of them will take several years to pay out.

Jay Malave, CFO of Lockheed Martin, said the company estimates it will see $1.5 billion in sales related to Ukraine this year, about the same as in 2022, and $6 billion by 2027, The Wall Street Journal reported Tuesday.

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