passed Wall Street’s second-quarter earnings estimates — with one caveat — and raised full-year earnings estimates. Still, shares fell in premarket trading.
For the quarter, Lockheed (ticker: LMT) reported $6.52 in earnings per share from $17 billion in sales, in line with Wall Street’s expectations for $6.53 in earnings per share from $17 billion in sales. But Lockheed recorded a $0.61 per share compensation related to “performance problems encountered in a classified program” with its aircraft-building franchise Aeronautics. These types of expenses, labeled a special surcharge by Lockheed, usually do not occur.
Removing that 61 cent charge makes Lockheed’s quarter look solid. In addition, the company increased its raised year guidance. Lockheed now expects to earn about $26.85 for the full year 2021, compared to the $26.55 forecast given in April.
Lockheed has raised its full-year earnings forecast as it reports both its first and second quarter results.
Lockheed shares fell about 1% in premarket trading on Monday.
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futures fell about 0.3% and 0.4% respectively.
“In my first year leading our company, I am proud of the extraordinary determination our 114,000 team members have shown to meet the challenges of the pandemic in support of our customers, our nation and our allies.” said James Taiclet, chairman, president and CEO of Lockheed Martin. “Our teams continue to deliver key platform programs while developing technologies critical to 21st century deterrence and scientific discovery.”
Sales grew in each of the company’s segments: aerospace, missiles, helicopters and space systems. Total revenue grew approximately 5% year over year.
Lockheed management hosts a conference call for analysts and investors at 11 a.m. east. Investors will want to hear about the defense budget and its impact on Lockheed’s sales, as well as the outlook for future profit margins.
Year-to-date, Lockheed stock is up 7.3%, lagging behind the S&P 500’s comparable gain of 17.5%. However, Lockheed stock is trading at 13.6 times its estimated 2022 earnings. S&P 500 is trading at 20.5 times estimated 2022 earnings.
Write to Al Root at email@example.com