Lockheed Martin (LMT.US) Q2 revenue, EPS beat expectations, raised full-year guidance

Lockheed Martin Corp. (LMT.US) reported second-quarter revenue above expectations, driven by demand for fighter jets and radar systems, and raised its full-year revenue and profit guidance. Lockheed Martin reported second-quarter revenue of $18.122 billion, up 8.6% from a year earlier, beating the consensus estimate of $17.06 billion; net income was $1.641 billion, slightly below the $1.781 billion a year earlier; earnings per share was $6.85, beating the consensus estimate of $6.46.

By segment, aerospace revenue was $7.277 billion, up 5.8% from a year earlier; missile and fire control revenue was $3.102 billion, up 12.6% from a year earlier; rotary and mission systems revenue was $4.548 billion, up 16.7% from a year earlier; and space revenue was $3.195 billion, up 1% from a year earlier.

Lockheed Martin resumed deliveries of F-35 fighter jets to the US last week, which had been paused due to delays in upgrading the jets. Lockheed Martin said the F-35 jets remain the most important priority and expects to deliver 75 to 110 F-35s this year. The company also said it returned $1.6 billion to shareholders in the second quarter through dividends and share repurchases.

Looking ahead, Lockheed Martin expects full-year revenue of $70.5 billion to $71.5 billion, above its previous guidance of $68.5 billion to $70 billion; it expects earnings per share of $26.10 to $26.60, above its previous guidance of $25.65 to $26.35. The company also expects full-year free cash flow of $6 billion to $6.3 billion, in line with its previous guidance.