Lockheed Martin Heads Higher On Solid Q3 Results

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In case you hadn't noticed, IBD's Aerospace/Defense group is well represented in the Dividend Leaders screen.Raytheon ( RTN ),General Dynamics ( GD ) (profiled Tuesday in this space) andLockheed Martin ( LMT ) all make the cut, due in large part to a consistent track record of dividend payouts.

In late September, Lockheed Martin raised its quarterly dividend 16% to $1.33 a share. The dividend will be paid on Dec. 27 to shareholders of record Dec. 2. It currently yields a tidy 4.2%.

Early Tuesday, Lockheed reported better-than-expected earnings and sales. Profit rose 14% from a year ago to $2.57 a share, easily topping the consensus estimate by 31 cents. Sales of $11.35 billion fell 4% to $11.35 billion, but also beat views.


Its aeronautics unit accounted for nearly one-third of total revenue. Sales fell 2% from a year ago to $3.6 billion due to fewer aircraft deliveries of its F-16 and F-22 jets. Higher sales of F-35 fighter jets and C-130 and C-5 transport plans helped offset the decline. The only unit to show a sales gain was Missiles and Fire Control, up 3% to $2 billion on strength in air and missile defense programs.

Despite uncertainty over future military spending, the company generated $15 billion of orders in the third quarter and increased its backlog to $78.7 billion.

Lockheed raised its full-year earnings outlook to $9.40-$9.70 share, better than its prior forecast of $9.20-$9.50. The current consensus estimate is for $9.50, up 12%.

Lockheed rebounded nicely Tuesday after diving 3% in heavy volume the prior day. It's back above its 50-day moving average and is 1% off an all-time high, but several above-average volume declines since Sept. 20 have caused its Accumulation/Distribution Rating to slump to D. The stock is four weeks into a new consolidation.

Northrop Grumman ( NOC ) reports Wednesday andRaytheon ( RTN ) reports Thursday.



The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Personal Finance , Investing Ideas

Referenced Stocks: GD , LMT , NOC , RTN

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