Lockheed Martin Corporation (LMT, Financial), a prominent defense contractor, reported that its third-quarter revenue fell short of expectations, primarily due to a decline in aerospace product sales. The company recorded a 1% year-over-year revenue increase, reaching $17.1 billion, compared with analysts' expectations of $17.38 billion. However, the company's earnings per share (EPS) exceeded expectations at $6.80.
In the company's aerospace division, third-quarter sales decreased by 3% to $6.49 billion, largely attributed to delays in contract authorization and funding for the F-35 fighter jet. Sales in the space division saw a slight decline of less than 1%, reaching $3.08 billion. Meanwhile, the missiles and fire control division experienced an 8% revenue growth, climbing to $3.18 billion. The Rotary and Mission Systems division, which focuses on protecting governmental and military client platforms, systems, networks, and data, reported a 6% increase in revenue, reaching $4.37 billion.
Lockheed Martin has revised its full-year EPS target upwards and narrowed its revenue guidance. The company increased its EPS forecast from a range of $26.10 to $26.60 to $26.65, and adjusted its revenue expectations from $70.5 billion to a range between $71.25 billion and $71.5 billion. Year-to-date, Lockheed Martin's stock price has risen by nearly 30%.
