Defense and aerospace giant Lockheed Martin Corporation (NYSE:LMT) this morning posted much better-than-expected third quarter earnings results and lifted its full-year outlook.
The Bethesda, MD-based company reported adjusted Q3 results of $3.61, blowing away analyst expectations of $2.87. Revenue surged 14.8% from last year to $11.55 billion, edging out Wall Street’s view for $11.45 billion.
Looking ahead, LMT boosted its full-year EPS guidance to $12.10, up from a prior forecast of $11.15 to $11.45. Analysts are looking for $11.72 per share for the year. Lockheed also now sees full-year revenues of $46.5 billion, up from a previous view of $45 to $46.2 billion, and above Wall Street’s $46.38 billion estimate.
Amid the earnings release, LMT increased its share buyback authorization by $2.0 billion, and boosted its quarterly dividend payout by 10% to $1.82 per share.
During the third quarter, Lockheed completed its sale of its IS&GS business segment, which provides air traffic control and related services to government agencies, to Leidos. The sale was aimed at cutting slow-growth units and focusing on other segments with better future growth potential.
The company commented via press release:
“The corporation achieved a quarter of strong operational and financial results, while also completing our strategic disposition of IS&GS,” said Lockheed Martin Chairman, President and CEO Marillyn Hewson. “Looking ahead to 2017, we are focused on providing innovative solutions to our customers, while executing on our realigned business portfolio to generate growth and value to shareholders.”
Lockheed Martin shares rose $4.34 (+1.87%) to $236.50 in premarket trading Tuesday. Prior to today’s report, LMT had gained 6.91% year-to-date, versus a 5.4% return for the benchmark S&P 500 index in the same period.