Lockheed Martin F-35 Joint Strike Fighter Lightning II
Robert Sullivan | FlickrCC
Lockheed Martin reported a better-than-expected quarterly profit on Tuesday and forecast 2020 revenue above analysts’ estimates, as the Pentagon’s No.1 weapons supplier benefited from heightened geopolitical tensions in the Middle East.
Shares of Lockheed rose 2.5% in pre-market trading, after the company said it delivered 134 F-35 fighter jets to the United States and its allies in 2019, a 47% increase from a year earlier.
U.S.-Iran tensions over the past few months have also helped build momentum for defense purchases, benefiting Lockheed and other weapons makers, analysts have said.
The company raised its 2020 revenue outlook to a range of $62.75 billion to $64.25 billion, beating analysts’ estimate of about $62.61 billion.
Lockheed said it expects full-year earnings per share to be in the range of $23.65 per share to $23.95 per share, below analysts’ expectation of $24.30 per share, according to IBES data from Refinitiv.
Net earnings rose to $1.5 billion, or $5.29 per share, in the fourth quarter ended Dec. 31, from $1.25 billion, or $4.39 per share, a year earlier.
Analysts, on average, had expected the company to post a profit of $5.03 per share.
Net sales rose 10.2% to $15.88 billion, below analysts’ expectation of $15.29 billion.