Lockheed Martin misses Wall Street forecasts

Lockheed Martin’s Q3 results fell short of Wall Street estimates but the defence and technology company raised its full-year sales forecast and set a higher dividend. Shares fell more than 2% on early trading.

Lockheed’s net earnings from operations fell 13.8% to $939m, or $3.24 per share, from $1.1bn, or $3.61 per share, in the same quarter last year. Net sales rose to $12.2bn from $11.6bn a year ago.

Analysts had expected $3.26 per share on revenue of $12.81bn, according to Thomson Reuters I/B/E/S data.

Profit down

Operating profit from Lockheed’s Space Systems business unit halved to $218m from the same quarter last year, partly due to a non-recurring pre-tax gain in the third quarter of 2016, and slightly lower sales volume in two government satellite programs.

But the company increased its full year 2017 sales forecast to $51.2bn, from $50bn, citing its continued focus on operational performance. In addition, Lockheed said it would raise its quarterly dividend rate by 10% to $2.00 per share.

Lockheed forecast 2018 net sales would grow by 2%.