Lockheed Martin posts better-than-expected profit, reiterates 2022 sales outlook

[WASHINGTON] US weapons maker Lockheed Martin reported better-than-expected quarterly profit on Tuesday, helped by a strong performance at its ships and helicopters unit and venture capital gains, and reiterated its sales guidance for 2022.

Lockheed reported net operating earnings were US$2 billion in the fourth quarter or US$7.47 per share, surpassing analyst estimates of US$1.98 billion or US$7.12 per share according to Refinitiv data. Full-year earnings per share were US$22.76, beating analyst estimates of US$22.44.

Net sales were US$17.7 billion during the fourth quarter, just beating analyst estimates of US$17.67 billion.

Last October, the Bethesda, Maryland-based company lowered its 2022 full-year revenue outlook to US$66 billion - sending its shares tumbling - citing challenges with its supply chain.

Lockheed reaffirmed that 2022 revenue guidance on Tuesday.

US President Joe Biden has not signalled he plans to slash the 2023 budget for Lockheed's biggest customer, the Pentagon, despite progressive Democrats calling for a reduction in military spending and the US withdrawal from Afghanistan.

The company said it now expects full-year 2022 earnings per share to be about US$26.70, ahead of analysts' expectation of US$26.36 per share, according to data from Refinitiv.

Lockheed's biggest unit, which makes F-35 fighter jets for the United States and its allies, delivered 142 of the stealthy planes in 2021, three more than originally planned.

During 2021 the company sent US$7 billion back to shareholders in the form of dividends and share repurchases, and paid an effective tax rate of 16.9 per cent.

REUTERS