Lockheed Martin Corp. (NYSE: LMT) released reports of exceeding benchmark sales for its F-35 planes. The government’s largest weapons supplier reported better than expected sales of the fighter airplane and used the momentum to estimate higher FY earnings.
As recently as July 10th, the Pentagon had announced it would acquire another 13 jets, although the time table for the sale was not released. This came as good news for Lockheed, with net income rising 5% or $3.23 per share, net sales also saw a boost, reaching $12.69 billion from last year’s $11.58 billion.
The company has also released a revised FY guidance, increasing its forecast for profit per share to $12.30 - $12.60, as well as bumping up their sales forecast to $49.80 - $51.00 billion, from their previous guidance of $49.50 - $50.70 billion.
Luckily for defense contractors, President Trump is a believer in increased government spending on defense, buoying stock prices. According to the company, sales within its aeronautics division have increased 19.4% during the quarter, even though the F-35 initiative is the Pentagon’s most expensive. The program, according to Reuters, would deliver the jets through fiscal 2044 and cost more than a trillion dollars over the life of the program.