Lockheed Martin (NYSE: LMT) — one of 30 companies listed in Executive Mosaic’s GovCon IndexÂ and an S&P 500 stock — liftedÂ its profit and revenue outlooks for 2016Â despite a year-over-year decline in first quarter net income due to one-off charges for workforce reductions and other items.
The Bethesda, Maryland-based aerospace and defense contractor now expects full-year earnings per share in the range of $11.50-to-$11.80 compared to the previous $11.45-to-$11.75 outlook, with revenue at $49.6 billion-to-$51.1 billion over the prior $49.5 billion-to-$51 billion forecast.
First quarter earningsÂ fell from the prior year period toÂ $2.58 per share, or $794 millionÂ including $99 million in chargesÂ related to layoffs in the company’s aeronautics segment that manufactures the F-35 fighter jet and the information systems and global solutions segment.
Lockheed said the charges impacted first quarter earningsÂ byÂ 21 cents per share, or $64 million, and Wall Street analysts expected the company to post $2.59 EPS.
The companyÂ is cutting approximately aeronautics jobsÂ and per a Washington Post reportÂ will eliminate nearly 200 positions from the IS&GSÂ segment that will merge into Reston, Virginia-based contractorÂ Leidos Holdings (NYSE: LDOS).
Those 200 IS&GS layoffs come on top of aÂ 500-job reduction move in that segmentÂ Lockheed announced in September 2015Â as part of the company’sÂ review of the business that eventually led to the deal with Leidos.
Revenue for the first quarter totaled $11.7 billion toÂ exceedÂ analyst forecasts of $11.34 billion and register an approximateÂ 15.72-percent year-over-year increase on an added $990 million in salesÂ from the Sikorsky helicopter business acquired from United Technologies Corp. (NYSE: UTX) for $9 billion in November 2015.
Shares in Lockheed are up 4.21 percent year-to-date compared to the S&P 500 composite index’s respective gain of 2.15 percent, while the company’sÂ stock has risen 15.83 percent over 12 months with theÂ S&P 500 down 1.41 percent.