Lockheed Martin (NYSE: LMT) — one of 30 companies listed in Executive Mosaic’s GovCon Index and an S&P 500 stock — lifted its profit and revenue outlooks for 2016 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 earnings fell from the prior year period to $2.58 per share, or $794 million including $99 million in charges 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 earnings by 21 cents per share, or $64 million, and Wall Street analysts expected the company to post $2.59 EPS.
The company is cutting approximately aeronautics jobs and per a Washington Post report will eliminate nearly 200 positions from the IS&GS segment that will merge into Reston, Virginia-based contractor Leidos Holdings (NYSE: LDOS).
Those 200 IS&GS layoffs come on top of a 500-job reduction move in that segment Lockheed announced in September 2015 as part of the company’s review of the business that eventually led to the deal with Leidos.
Revenue for the first quarter totaled $11.7 billion to exceed analyst forecasts of $11.34 billion and register an approximate 15.72-percent year-over-year increase on an added $990 million in sales 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’s stock has risen 15.83 percent over 12 months with the S&P 500 down 1.41 percent.