Tuesday, aerospace and defense company Lockheed Martin Corp. (LMT) reported a 13% increase in second-quarter profit helped by higher unusual items and net sales that beat market projections, despite an 8% decline in Aeronautics sales. Meanwhile, the company's other three divisions recorded improved performance. Further, the company lifted its fiscal 2008 revenue and earnings per share, which is within analysts' estimate range.
The company's second-quarter net earnings grew 13% to $882 million from prior year's $778 million, while earnings per share climbed 18% to $2.15 from $1.82 last year.
The 2008-second quarter results included unusual gain of $56 million or $0.14 per share related to reversal of reserves associated with the favorable settlement, while last-year's results included gain of $16 million or $0.04 per share, related to the sale of the company's remaining 20% interest in COMSAT International.
On average, 20 analysts polled by First Call/Thomson Financial expected earnings of $1.88 per share for the quarter.
Quarterly net sales rose 4% to $11.04 billion from $10.65 billion a year ago, and beat analysts' consensus estimate of $10.86 billion.
Among divisions, net sales for Aeronautics decreased 8% from last year to $2.88 billion, while net sales for Electronic Systems rose 6% to $3.10 billion, Information Systems & Global Services, or IS&GS net sales grew 13% to $2.86 billion, and Space Systems sales went up 6% to $2.20 billion.
Commenting on the results, Bob Stevens, chairman, president and CEO said, "In line with our expectations, the Corporation had a strong second quarter, strategically, operationally and financially."
Among peers, Boeing Co. (BA) is slated to release its second-quarter results on Wednesday, July 23. Analysts estimate earnings of $1.22 per share on revenues of $17.24 billion for the quarter.
Northrop Grumman Corp. (NOC) is likely to release its second-quarter earnings on Tuesday, July 29. Analysts project earnings of $1.40 per share for the quarter, on revenues of $8.28 billion.
For the first six months of fiscal 2008, Lockheed's net earnings rose 10% to $1.61 billion from $1.47 billion last year. Earnings per share grew 14% to $3.90 from $3.42 a year ago. Year-to-date net sales increased 6% to $21.02 billion from prior year's $19.93 billion.
Looking ahead, Lockheed lifted its fiscal 2008 earnings per share and sales forecast, reflecting higher projected segment operating profit on strong segmental performance, earnings of $0.14 per share on an unusual item, lower interest expense, and the acquisition of the Eagle Group.
The company now expects earnings in the range of $7.45 - $7.60 per share, up from prior outlook of $7.15 - $7.35 per share. Analysts expect earnings of $7.47 per share, with estimates ranging between $7.29 and $7.65 per share.
Total revenue is projected to be in the range of $41.90 billion - $42.90 billion, higher than its previous forecast of $41.80 billion - $42.80 billion. Analysts expect revenues of $42.87 billion.
The company now expects full year operating profit in the range of $4.855 billion - $4.955 billion, higher than previous guidance of $4.695 billion from $4.820 billion.
LMT is currently trading at $102.80, up $1.21 or 1.19%, on a volume of 108 thousand shares.
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