Lockheed beats estimates on sustained weapons demand amid geopolitical tensions By Reuters

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<span>© Reuters. FILE PHOTO: People converse in Lockheed Martin&#8217;s booth during the Association of the United States Army (AUSA) Global Force Symposium &amp; Exposition in Huntsville, Alabama, U.S. March 28, 2023. REUTERS/Cheney Orr/File Photo</span><br />
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<p>By Pratyush Thakur and Mike Stone</p>
<p>(Reuters) -U.S. defense contractor <span itemscope="" itemtype="http://schema.org/Corporation"><span itemprop="name"> Lockheed Martin </span></span> (NYSE:) shares are up 2%after reporting better-than-expected third-quarter revenue and profit on Tuesday, as geopolitical tensions fueled sustained demand for its military equipment.</p>
<p>During pre-market trading Lockheed shares were down as much as 2.1% due to weak sales in the unit that makes the F-35 fighter jet, but reversed in early trading in New York to $450.52 per share, up 2%.</p>
<p>The war in Ukraine has prompted restocking arms and ammunition such as shoulder-fired missiles, artillery and other weaponry, providing U.S. defense companies with lucrative Pentagon contracts. </p>
<p>Lockheed&#8217;s weapons, such as the guided multiple launch rocket system and Javelin anti-tank missiles, made in conjunction with defense company RTX, have proven critical to Ukraine&#8217;s war efforts.</p>
<p>However, Lockheed is still hindered by pandemic-related labor and supply chain disruptions that continue to affect business lines like the aeronautics business which makes the advanced F-35 fighter jet. </p>
<p>&#8220;We are still paced by a few key items,&#8221; Lockheed&#8217;s Chief Operating Officer Frank St. John told Reuters in an interview, such as &#8220;processor assemblies, solid-rocket motors, castings and forgings&#8221;, though they have seen progress in this last quarter. </p>
<p>As a result, sales at its aeronautics unit, the largest by size, saw a 5.2% decline in the third quarter.</p>
<p>The company last month cut its full-year F-35 jet delivery target on supplier delays but reaffirmed its 2023 financial goals on Tuesday. </p>
<p>Revenue at the Missiles and Fire Control unit, which makes the High Mobility Artillery Rocket System, was $2.94 billion, up 3.8% from a year earlier.</p>
<p>Bethesda, Maryland-based Lockheed posted a net income of $6.73 per share for the quarter ended Sept. 24, beating estimates of $6.67 per share. </p>
<p>Quarterly net sales rose around 1.78% to $16.88 billion, beating Wall Street estimates of $16.74 billion, according to LSEG data. </p>
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