There's no business like the arms business, here's how the Pentagon's top weapon supplier did
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Lockheed Martin said Q3 sales in its rotary and mission systems business unit rose 55% to $3.35 billion, which accounts for approximately $1.2 billion in sales of Sikorsky helicopters.
The defense giant acquired Sikorsky, which notably manufacturers UH-60 Black Hawks and the presidential helicopter, for a cool $9 billion in June from United Technologies Corporation.
Considered a bellwether for the US defense sector, Lockheed Martin earned an adjusted $3.61 per share on revenue of $11.55 billion. Analysts were looking for adjusted EPS of $2.89 on revenue of $11.45 billion.
Lockheed Martin also raised its 2016 adjusted profit and sales outlook. The company raised its profit forecast to $12.10 per share from $11.15 - $11.45, and adjusted sales to $46.5 billion from $45 billion - $46.2 billion.
Despite significant snags in developing America's most expensive weapons system, sales in Lockheed Martin's aeronautics business, the company's largest, rose 7% (approximately $267 million) compared to the same timeframe in 2015.
This increase is due to "higher net sales of approximately $300 million for the F-35 program due to increased volume on aircraft production and sustainment activities," according to the earnings report.
Looking forward, Lockheed Martin anticipates its 2017 net sales to increase by approximately 7% as compared to 2016.
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