The GPS III Space Vehicle 05
Courtesy of Lockheed Martin
Lockheed Martin‘s quarterly sales fell short of estimates, overshadowing an earnings beat, and a strong full-year outlook that remained unchanged.
The aerospace-and-defense giant reported first-quarter earnings of $6.44 per share while Wall Street analysts were looking for $6.11 per share, according to FactSet data. But sales of $14.96 billion in the March-ended quarter were lower than the $15.58 billion analysts expected.
What’s more important here is the outlook, which remained unchanged this time around. The group still expects earnings per share of roughly $26.70 for the full year of 2022 on sales of about $66 billion. Analysts were looking for $26.42 per share on sales of $66.12 billion. Late last year
“We remain confident in our guidance for the remainder of the year and our growth outlook beyond,” said Lockheed Chairman, President, and CEO James Taiclet in a statement.
Taiclet also said: “Global events this quarter marked a dramatic change in the geopolitical environment and demonstrated the tremendous importance of an effective deterrent to aggression by major nation-states, and mutual defense among the United States and its allies.”
Lockheed stock in early trading Tuesday dropped by 2% to $458.57. Coming into Tuesday trading, shares were down 0.1% this week.
Defense stocks are up given the war in Ukraine. Lockheed Martin and Northrop Grumman (NOC) are up 31.5% and 20.3% year to date, respectively through Monday’s close. These stocks had taken a beating earlier this month when the Biden administration proposed a tight defense budget.
Raytheon Technologies, (RTX) reports first-quarter earnings early next week.
Write to Karishma Vanjani at email@example.com