Lockheed Martin Raises Annual Forecast as Backlog Reaches Record $292 Billion

what happened

According to Dow Jones Newswires, Lockheed Martin increased its full-year forecast because its order backlog kept growing through the third quarter and set a new record. The company now expects earnings of $30.35 to $30.75 per share, up from $29.95 to $30.65, and sales of $80 billion to $82 billion, compared with $79.75 billion to $81.75 billion before. Third-quarter profit reached $1.85 billion, or $7.97 per share, versus $7.52 expected by analysts polled by FactSet. Revenue rose 11% to $20.71 billion. Separately, Update reports that the Pentagon pledged to buy F-35 fighters over the next decade, under a framework covering 850 jets for the U.S. military and hundreds more for international customers.

why it matters

A long-term F-35 framework gives the company production visibility for years ahead, and a 27% jump in backlog since the second quarter supports sentiment across the defense sector. Dow Jones put premarket shares up 3.3% at $569.81, while Update cited a 3.9% gain to $573.

market impact

Defense sector and LMT: a higher outlook and record backlog support the stock and peers.

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