Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Lockheed Martin Earnings Jump 16% Despite Sales Decrease

Today, Lockheed Martin Corp.  (NYSE: LMT  )  announced third-quarter earnings from continuing operations of $2.57 per share -- which was an increase of 16% over the $2.21 reported for the third quarter last year. After including earnings from discontinued operations, its total earnings per share were $2.66, an increase of more than 20%.

This all comes despite falling sales for Lockheed Martin -- which were down from $11.9 billion in the third quarter of last year to $11.4 billion in the third quarter of this year, or roughly 4%. However, its cost of sales declined more than the sales themselves, from $10.9 billion to $10.2 billion or 6%, so net earnings rose from $727 million to $873 million.

Lockheed's biggest decline in sales came from its second-largest, but least-profitable, business, its Information Systems & Global Solutions unit, which saw sales fall from $2.3 billion to $2.1 billion as it continued to have a 9.1% operating margin. In total, Lockheed saw its total business operating margins at 12.8%.

Lockheed Martin saw its cash from operations fall from $1.6 billion in the third quarter of last year to $900 million this year thanks in large part to increased pension contributions. In addition, the company repurchased approximately $600 million of its common stock -- bringing its total to $1.5 billion through the first nine months of 2013 compared to $700 million over the same time period in 2012.

"Despite the uncertainty surrounding our industry, our employees remain focused on performing with excellence and delivering affordable and effective solutions for our customers," noted Lockheed Martin CEO Marillyn Hewson in a statement. "With strong third quarter performance across our business, we were able to increase net earnings, grow our backlog, generate strong cash from operations and return value to our stockholders."

Lockheed said it expects full-year earnings between $9.40 and $9.70 per share, up from its previous forecast of $9.20 to $9.50 per share.


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2693427, ~/Articles/ArticleHandler.aspx, 10/1/2016 8:25:26 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 11 hours ago Sponsored by:
DOW 18,308.15 164.70 0.91%
S&P 500 2,168.27 17.14 0.80%
NASD 5,312.00 42.85 0.81%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/30/2016 4:03 PM
LMT $239.72 Down -2.62 -1.08%
Lockheed Martin CAPS Rating: ****