Lockheed Martin raises full-year outlook after profit beat

In this news, we discuss the Lockheed Martin raises full-year outlook after profit beat.

(Reuters) – US arms maker Lockheed Martin LMT.N reported better-than-expected third-quarter profit, helped by higher sales at its aircraft unit that makes the F-35 fighter, and raised its forecast by profits for the full year.

The U.S. defense sector has fared better than other industries amid declining demand from the coronavirus pandemic as the government continued to purchase weapons while helping defense contractors pay for costs. wages of highly skilled workers.

Lockheed said deliveries of F-35 aircraft increased to 31 aircraft in the quarter ended September 27, from 28 a year earlier.

Earlier this year, Lockheed warned of a possible delay in delivery of 18 to 24 F-35 planes due to a shortage of parts, with the coronavirus hampering production throughout the supply chain.

The company said it now expects 2020 earnings per share of around $ 24.45, compared to its previous forecast of between $ 23.75 and $ 24.05 per share.

Lockheed also raised its full-year net sales outlook to $ 65.25 billion, from $ 63.5 billion to $ 65 billion previously.

Lockheed predicts that sales in 2021 will increase 3% to at least $ 67 billion with similar profit margins as the company recovers from the impact of the pandemic.

The Bethesda, Maryland-based company said it assumed the corporate rate would stay at 21%, which US presidential candidate Joe Biden said he would change if elected. Currently, Lockheed pays taxes at a rate of 14.7%.

Net income from continuing operations reached $ 1.75 billion, or $ 6.25 per share, in the quarter, from $ 1.61 billion, or $ 5.66 per share, a year earlier.

Analysts on average expected Lockheed to earn $ 6.09 per share, according to IBES data from Refinitiv.

Reporting by Ankit Ajmera in Bengaluru and Mike Stone in Washington; Editing by Krishna Chandra Eluri and Bernadette Baum

Original © Thomson Reuters

Originally posted 2020-10-20 16:56:11.

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