Lockheed Martin (LMT 0.83%) on Tuesday reported first quarter revenue up 9.4% year over year and earnings that came in well ahead of expectations, demonstrating the resilience of its defense portfolio in the face of the COVID-19 pandemic.
Lockheed Martin reported first quarter earnings of $6.08 per share on revenue of $15.7 billion, topping expectations for $5.80 per share in earnings on $15 billion in revenue. The company's aeronautics segment led sales higher, up 14% year over year, while missiles was up 11% and space posted a 10% gain.
Shares of defense contractors including Lockheed have been caught up in the broader downdraft due to the pandemic, with Lockheed Martin shares down more than 25% year to date in late March. The company in its release said in the quarter the pandemic "did not have a material impact" on operations, although Lockheed is beginning to experience some issues mostly related to supply chain disruptions.
"The extent of the impact of the COVID-19 pandemic on the corporation's operational and financial performance, including its ability to execute its programs in the expected timeframe ... are uncertain and cannot be predicted," Lockheed Martin said.
While the first quarter results were strong investors might be a bit disappointed by the full-year guidance, which was left unchanged despite the beat. Lockheed Martin expects to earn between $23.65 and $23.95 per share in 2020 on revenue of $62.25 billion to $64 billion. Analysts had expected full-year earnings of $24.12 per share on revenue of $63.67 billion.