Lockheed Martin beats first-quarter profit estimates and raises guidance

Defense contractor Lockheed Martin Corp. said Tuesday it had net income of $1.8 billion, or $6.56 a share, in the first quarter, up from $1.7 billion, or $6.08 a share, in the year-earlier period. Sales rose to $16.3 billion from $15.7 billion. The FactSet consensus was for EPS of $6.30 and sales of $16.3 billion. The net income figure includes unrealized gains from investments held in the Lockheed Martin Ventures Fund of $68 million, as well as severance and restructuring charges of $35 million, to close and consolidate facilities and reduce workforce at the rotary and mission systems business segment. The company raised its guidance for 2021 and now expects EPS to range from $26.40 to $26.70, compared with guidance offered in January of $26.00 to $26.30. It expects revenue to range from $67.3 billion to $68.7 billion, compared with earlier guidance of $67.1 billion to $68.5 billion. The FactSet consensus is for full-year EPS of $26.33 and revenue of $68.1 billion. Shares were down 1.1% premarket but have gained 10.4% in the year to date, while the S&P 500 has gained 10.8%.

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