The world's largest defense contractor delivered an
impressive quarter. Are the results sustainable?
Investors had high hopes for Lockheed Martin (NYSE:LMT)
heading into the company's third-quarter earnings report, and the aerospace
giant delivered results that lived up to those expectations. The company
reported earnings per share of $5.14, beating estimates by $0.87, on revenue
that, at $14.32 billion, beat expectations by $1.23 billion.
There was a lot to like about the quarter, with all four
Lockheed Martin segments delivering top-line growth of between 11% and 20%. The
company generated $361 million in cash from operations in the quarter, even
after making a $1.5 billion pension contribution, and ended the quarter with a
backlog of more than $109 billion.
The company also updated its full-year guidance, saying it
expects $5.8 billion in operating profits on sales of $53 billion. Both numbers
are at the upper end of previous guidance. Lockheed Martin also expects to
generate about $3.4 billion in cash in all of 2018.
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