In the company’s aeronautics division sales were down 7% year over year and operating profits were down 6%. Information systems sales were down 2% and profits fell 22%. Missiles and fire control sales were 19% lower and profits were down 18%.
On the plus side, mission systems and training sales were up 1%, but profits fell 12%. Space systems sales rose 5% and profits rose 13%. Included in the space systems division’s profits were equity earnings of $75 million primarily from its United Launch Alliance (ULA) joint venture with Boeing.
Lockheed repurchased 3 million shares, valued at $604 million, in the first quarter and paid cash dividends of $498 million. Capital spending rose to $118 million in the quarter.
In its financial outlook, the company reaffirmed its full-year net sales estimate of $43.5 billion to $45 billion and raised its consolidated operating profit forecast by $50 million at both ends of its prior range to a new range of $5.35 billion to $5.5 billion.
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Lockheed also raised its prior EPS estimate from a range of $10.80 to $11.10 to a new range of $10.85 to $11.15. Cash flow from operations is forecast to be at least $5 billion, unchanged from the prior forecast.
The consensus analysts’ estimates for the second quarter call for EPS of $2.75 on revenues of $11.08 billion. For the full year, analysts are looking for EPS of $11.14 on revenues of $44.65 billion.
Lockheed shares traded higher in Tuesday’s premarket session, up about 0.7% to $198.25, in a 52-week range of $155.82 to $207.06. Thomson Reuters had a consensus analyst price target of around $209.00 before this latest report.
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