Lockheed Martin Boosts 2020 Guidance
January 28 2020 - 9:10AM
Dow Jones News
By Doug Cameron
Lockheed Martin Corp. on Tuesday forecast another year of record
sales following booming demand in the U.S. and overseas for its
combat jets, missiles and classified satellites.
The world's largest defense company by sales raised existing
guidance for 2020 revenue and profits as it works through a backlog
of $144 billion and prepares for two big Pentagon competitions for
military helicopters that analysts said could be worth $100 billion
to the winners.
Lockheed Martin's footprint across air, space, sea and land
systems makes it a proxy for Pentagon spending, with U.S.
government outlays soaring 23% in the final quarter of 2019 from a
year earlier.
The company reported profits of $1.5 billion in the December
quarter compared with $1.3 billion a year earlier. Per-share
earnings rose to $5.29 from $4.39, well above the $5.03 consensus
among analysts polled by FactSet.
Lockheed Martin expects sales to rise to $63.5 billion this
year, based on the midpoint of its new guidance, some $1.5 billion
above its prior forecast. Profits are forecast at between $23.65
and $23.95 a share, and free cash flow guidance was also
increased.
The heightened threat environment -- especially in the Middle
East -- has boosted shares across the defense sector, with Lockheed
Martin in record territory, closing Monday at $432.38, valuing the
company at $122 billion.
The stock was up almost 2% in pre-open trade.
The company last week added Gen. Joe Dunford as a director,
months after he stepped down as chairman of the Joint Chiefs of
Staff.
Write to Doug Cameron at doug.cameron@wsj.com
(END) Dow Jones Newswires
January 28, 2020 08:55 ET (13:55 GMT)
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