Lockheed Martin (LMT) - Get Report missed Wall Street's earning expectations Tuesday, but the aerospace giant beat analysts' sales forecasts as it responded to supply chain problems caused by the coronavirus pandemic.
Shares of the Bethesda, Maryland company were down nearly 2.35% to $335.44 at last check.
Lockheed Martin reported net income of $1.79 billion, or $6.38 a share, compared with $1.50 billion, or $5.29 a share, a year ago. The FactSet consensus called for earnings of $6.40 per share.
Sales totaled $17.03 billion, up 7.3% from a year ago and surpassing FactSet's call for $16.95 billion.
Lockheed delivered 42 of its signature F-35 fighters in the quarter, down from 51 a year ago. In September, the company said deliveries of the F-35 that had been postponed due to the impact of the Covid-19 supply chain would not fully recover until the end of 2021.
Aeronautics' net sales increased 5%, from a year ago. Aeronautics' operating profit in the quarter increased 7%. Missile and fire control net sales increased 4%, while rotary and mission systems increased 8%.
Looking ahead, Lockheed Martin said that for 2021, it expects earnings to range from $26 to $26.30 per share, with sales between $67.10 billion to $68.50 billion.
The FactSet consensus calls for earnings of $26.18 per share and sales of $67.97 billion.
The company said favorable contract award timing, strong operational performance and lower travel and overhead expenditures due to COVID-19 restrictions partially offset the impacts of COVID-19 on the corporation's financial results in 2020.
"Throughout 2020, the men and women of Lockheed Martin overcame the public health, operational and supply chain challenges caused by the COVID-19 pandemic, and continued to deliver the platforms, systems, and services essential to the national defense of the U.S. and its allies and to the continuation of scientific discovery," president and CEO James Taiclet said in a statement.