Lockheed Martin (NYSE:LMT) has delivered first-quarter results that beat estimates after the world’s largest defence contractor secured more contracts for its equipment from US and international customers as global geopolitical tensions rise.
Net sales for the three months to March 26, 2023, rose to $15.1 billion from $15 billion in 1Q 2022, while Wall Street had expected no change at all. Net earnings were steady at $1.7 billion, with adjusted diluted earnings per share (EPS) also unchanged at $6.43, above Street estimates for EPS of $6.06.
The company highlighted a contract it secured for the first US sea-based hypersonic missile program, Conventional Prompt Strike (CPS). It also delivered the first F-16 fighter aircraft out of its new Greenville, South Carolina factory. During the quarter, it was also selected to provide 88 F-35 fifth-generation fighter aircraft to Canada.
“We are off to a strong start for the new year in delivering to our customers the products and systems essential to enhancing national security and space exploration, and in delivering performance and value to our shareholders," the company’s chairman, president and CEO Jim Taiclet said in a statement.
Lockheed said it is on course to meet its full-year guidance and has also continued returning capital to shareholders, including $500 million in share buybacks and $784 million in dividends over the quarter.
It is targeting 2023 net sales of approximately $65 billion to $66 billion and diluted EPS of between $26.60 and $26.90.
“In addition, all of our Business Areas continue to develop mission-based solutions that are designed to be integrated into an open architecture using 21st-century digital technologies to elevate the deterrence posture of the United States and its allies,” Taiclet added. “We are demonstrating these capabilities in partnership with commercial technology leaders across a number of disciplines.”
The company's shares rose 1.6% to $497.57 in pre-market trade.
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