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Lockheed Martin raises 2020 profit forecast, shares jump

Credit: REUTERS/KIM KYUNG-HOON

Lockheed Martin raised its full-year profit and revenue forecasts on Tuesday as the U.S. weapons supplier overcame coronavirus-driven supply disruptions to post higher quarterly sales in its aeronautics unit that makes the F-35 fighter jet.

Adds estimates, company comment, details on results and background

July 21 (Reuters) - Lockheed Martin LMT.N raised its full-year profit and revenue forecasts on Tuesday as the U.S. weapons supplier overcame coronavirus-driven supply disruptions to post higher quarterly sales in its aeronautics unit that makes the F-35 fighter jet.

Shares of the company rose 3.6% to $378.6 in premarket trading after Lockheed also topped analysts' estimates for second-quarter profit.

The Pentagon has sought to make sure defense contractors do not lose highly skilled workers during the coronavirus crisis, and has used its funds to prevent employees from being laid off or poached by better-funded competitors.

"The corporation and U.S. Government's proactive efforts, especially with regard to the supply chain, helped to partially mitigate the disruptions caused by COVID-19," the company said in a statement.

Lockheed said it expects 2020 earnings per share between $23.75 and $24.05, compared with its previous forecast of between $23.65 and $23.95.

Quarterly sales in its aeronautics unit rose 17.2% to $6.50 billion. Total revenue rose 12.4% to $16.22 billion.

Net earnings rose to $1.63 billion, or $5.79 per share, in the second quarter ended June 28, from $1.42 billion, or $5 per share, a year earlier.

Excluding items, the company earned $6.13 per share, above analysts' expectations of $5.72 per share, according to IBES data from Refinitiv.

(Reporting by Sanjana Shivdas in Bengaluru; Editing by Aditya Soni)

((SanjanaSitara.Shivdas@thomsonreuters.com; within U.S. +1 646 223 8780, outside U.S. +91 80 6749 1642; Twitter: @SanjanaShivdas;))

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