Lockheed Martin (NYSE: LMT) reported its second quarter financial results before the market open on Tuesday. Despite surpassing analysts’ estimates in both earnings and revenue, shares were trading 1% lower shortly after the opening bell.
For the second quarter, Lockheed reported earnings of USD 5.00 per share on revenue of USD 14.4 Billion. Refinitiv analysts expected earnings of USD 4.77 Billion on revenue of USD 14.2 Billion.
Lockheed witnessed growth across all of its segments, but saw significant strength in its Missiles and Fire Control unit. Lockheed’s Missiles and Fire Control unit reported revenues of USD 2.41 Billion compared to USD 2.08 Billion the same quarter a year prior. Moreover, the unit witnessed its operating profit rise from USD 279 Million last year to USD 327 Million at the end of the second quarter.
Aeronautics reported revenue of USD 5.55 Billion, compared to USD 5.32 Billion last year. Rotary and Mission Systems revenue was USD 3.76 Billion versus USD 3.56 Billion the same quarter last year. Lastly, Space revenue amounted USD 2.69 Billion, compared to USD 2.42 Billion a year ago.
The strong performance across Lockheed’s segments led to an 8% increase in revenue year-over-year. In particular, Lockheed’s Missiles and Fire Control unit was a primary factor to the 6% increase in overall operating profit.
“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,” said Lockheed Martin Chairman, President and Chief Executive Officer Marillyn Hewson.
“Our team remains focused on driving growth, investing in innovative solutions, and creating long-term value for shareholders.” concluded Hewson.
Due to the better-than-expected, Lockheed revised its fiscal 2019 outlook for the remainder of the year. Now, Lockheed expects diluted earnings of USD 20.85 to USD 21.15 per share on revenue between USD 58.25 Billion to USD 59.75 Billion. Previously, the Company forecasted diluted earnings between USD 20.05 to USD 20.35 per share on revenue between USD 56.75 Billion to USD 58.25 Billion.
Lockheed Martin shares are now up 34.86% this year leading into Tuesday’s opening.