Lockheed Martin chief test pilot Alan Norman discusses the Pentagon’s purchase of 478 F-35 fighter jets and the cell’s ability to adapt to new demands, being relevant “for decades to come.”
Lockheed Martin Corp. on Tuesday raised its year-over-year sales and earnings guidance as the Pentagon accelerated defense contract awards and pledged to cover the industry’s biggest costs during the coronavirus pandemic.
The world’s largest defense company by sales increased its order book to over $ 150 billion and overcame supply chain disruptions to report quarterly earnings that beat the forecast as it continued to ship F-35 fighter jets, helicopters. Sikorsky and anti-missile defense systems.
Defense contractors continued to operate relatively unscathed through orders to stay home due to the pandemic after being deemed essential businesses, and the Pentagon promised to cover the estimated additional costs at a maximum of $ 10 billion.
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Lockheed Martin shares rose more than 3% in premarket trading. Other defense companies also rose.
Analysts estimate that Lockheed Martin incurred $ 2.5 billion in additional costs related to the pandemic, and said he assumed these would recover as he forecasts earnings per share this year to increase between $ 23.75 and $ 24.05, compared to his Previous forecast of $ 23.65 to $ 23.95.
| Heart | Security | Latest | Change | Change% |
|---|---|---|---|---|
| LMT | LOCKHEED MARTIN CORPORATION | 375.12 | +9.59 | + 2.62% |
The company added $ 1 billion to the upper end of its forecast for sales for 2020, which is now expected to be between $ 63.5 billion and $ 65 billion, and increased its free cash flow guidance, which was observed from near.
The Pentagon has accelerated some large contract awards to defense contractors, which in turn have brought liquidity through its supply chain to keep component manufacturers afloat during the pandemic. Lockheed Martin has also continued to hire staff.
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Net earnings increased to $ 1.63 billion in the June quarter from $ 1.42 billion a year earlier, and earnings per share after single items rose to $ 6.13, above the $ 5 consensus , 72 among analysts surveyed by FactSet. Sales increased to $ 16.2 billion from $ 14.4 billion.
