Lockheed Martin Corp. raised its outlook for the second time this year after sales of its missiles and radars were higher than expected in the third quarter.
The defense contractor now expects revenue of about $71.3 billion this year, according to a statement Tuesday, near the upper range of its prior outlook and above the average analyst estimate of $71.1 billion. Lockheed raised its earnings per share view to about $26.65, also beating expectations. Backlog rose to a record $166 billion.
Demand for its tactical and strike missiles, as well as its warfare sensors and helicopters pushed Lockheed's third-quarter revenue to $17.1 billion, up from last year's $16.9 billion but below the average projection of $17.4 billion.
That shortfall is largely due to Lockheed's largest revenue driver, aeronautical sales, falling due fewer deliveries of its new-generation F-35 fighter jet. It shipped 48 in the quarter as it aims to hand over 75 to 110 new and backlogged jets by the end of the year.
Lockheed was set incremental milestones by the Pentagon earlier this month that could see it earn some of the potential $500 million in payments withheld for F-35s that lacked upgrades. The beleaguered jet program failed to meet minimum combat readiness rates for six straight years even after the military spent $12 billion on it, the Government Accountability Office said on Monday.
The F-35 program saw $480 million less in sales due to contractual authorization and funding delays, the company said in Tuesday's statement. It was also unable to recognize revenue and profit on about $400 million of costs incurred on the program in the third quarter.
Lockheed rival Raytheon Technologies also reported this morning, with sales and earnings both beating expectations.