Lockheed Martin sees earnings take off, ups guidance

Lockheed Martin reported a surge in second-quarter earnings and lifted its full-year guidance on Tuesday, after the US aerospace and defence giant shook off the impact of Covid-19.

Net sales rose to $16.2bn, compared to $14.4bn a year previously, while net earnings came in at $1.6bn or $5.79 per share. In 2019, second-quarter net earnings were $1.4bn and diluted EPS $5.00. Both net sales and EPS were higher than most analysts had forecast.

All four divisions – aeronautics, missiles and fire control, rotary and mission systems, and space – saw earnings rise. Aeronautics, the largest unit, reported a 17% rise in earnings to $6.5bn year-on-year on higher F-35 jet programme sales.

Lockheed said: “The pandemic has presented unprecedented business challenges, and the corporation has experienced impacts in each business area related to Covid-19, primarily in increased coronavirus-related costs, delays in supplier deliveries, impacts of travel restrictions, access to some locations and the impacts of remote work and adjusted work schedules.”

But it continued: “Favourable contract award timing and strong performance more than offset the impacts of covid-29 on the corporation’s financial results in the first half.”

Final net sales are now expected to come in between $63.5bn and $65.0bn, and diluted EPS by between $23.75 and $24.05. That compares to guidance in April of between $62.25bn and $64.0bn for net sales and EPS of between $23.65 and $23.95.

Lockheed conceded, however, that the “ultimate impact” of Covid-19 on the current year and future periods remained “uncertain”.

Shares in Lockheed rose sharply as trading got underway, and by 1445 BST were ahead 3%.