Lockheed Martin beats profit estimates, raises FY forecasts

Lockheed Martin Corp, the Pentagon`s No. 1 weapons supplier, reported a better-than-expected quarterly profit, helped by higher sales in its aeronautics division that makes fighter jets.

Shares of the company, which also raised its full-year revenue and profit forecasts, rose 2.6 percent to $296.00 in premarket trading on Tuesday. Lockheed`s shares had gained about 15 percent this year through Monday`s close.

Lockheed raised its 2017 profit forecast for the second time and said it now expects to earn $12.30 to $12.60 per share. The company in April forecast $12.15 to $12.45 per share.

The company raised it 2017 sales forecast to $49.80 billion to $51.00 billion, from $49.50 billion to $50.70 billion.

Lockheed said sales in its aeronautics business, the company`s biggest, rose 19.4 percent during the second quarter.

The F-35 program is the Pentagon`s costliest arms program and has been criticized by U.S. President Donald Trump and other U.S. officials for being too expensive.

The company`s net income from continuing operations rose about 5 percent to $942 million, or $3.23 per share, in the quarter ended June 25.

Net sales rose to $12.69 billion from $11.58 billion.

Analysts on average had expected a profit of $3.11 per share and revenue of $12.40 billion, according to Thomson Reuters I/B/E/S.

(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)