Lockheed Martin Corporation (NYSE: LMT) announced a partnership with Indian aerospace, defense and homeland security manufacturing company in the production of their most advance version of their powerful F16 fighter jets. The partnership arose from previously successful manufacturing of components for other projects such as the C-130J airlifter and the S-92 Helicopter.
Lockheed Martin stock has consistently been rising for the past 5 years and today has hit their own record high of over $284 per share. They have also, rom Q2 through Q4 of 2016 have reported earnings higher than analysts’ estimates. In Q1 of 2017 however, earnings were reported below analysts’ expectations. Though the earnings were less than approximations, Lockheed Martin has increased net sales from $10.4B Q1 2016 to $11.1B in Q1 2017. Despite the uptick, there was also a reduction in net earnings due to charges from continued operations and a loss program across several of their business segments. Earnings were reported as $763M from Q1 of 2017 that is $43M less that Q1 of 2016, which was reports as $898M.
There may be hopes of a better earnings report going forward as Lockheed Martin has signed many big deals in regards to production and large government contracts such as the $28 billion dollar worth, Saudi Arabian deal that was announced May 20, 2017. They also announced early n training day 6/19/2017 that they are closer to completing a $37B+ deal that will sell their F-35 jets to several different countries.
Mr. N. Chandrasekaran, chairman of Tata Sons stated in the release “This agreement builds on the already established joint venture between Lockheed Martin and Tata and underscores the relationship and commitment between the two companies” The Executive president of Lockheed Martin Aeronautics, Orlando Carvalho also added: “Lockheed Martin is honored to partner with Indian defense and aerospace leader Tata Advanced Systems Limited on the F-16 program… Our partnership significantly strengthens the F-16 'Make in India' offer, creates and maintains numerous new job opportunities in India and the U.S., and brings the world's most combat-proven multi-role fighter aircraft to India.”