RTX Stock Up on Results, Outlook; Lockheed Martin Shares Down on Sales, Guidance

Investopedia
01-29

Key Takeaways

  • Defense contractors RTX and Lockheed Martin posted differing results and guidance, sending shares in opposite directions.
  • RTX beat profit and sales forecasts, as all three of its units recorded revenue gains.
  • Lockheed Martin's sales fell short of estimates, as did its full-year earnings outlook.

Shares of RTX (RTX) and Lockheed Martin (LMT) headed in opposite directions Tuesday after the two big defense contractors reported quarterly results.

RTX shares advanced more than 2% when the maker of Pratt & Whitney engines posted fourth-quarter adjusted earnings per share (EPS) of $1.54, with revenue up 9% year-over-year to $21.62 billion. Both were above analysts' forecasts compiled by Visible Alpha.

Sales at the Pratt & Whitney division jumped 18% to $7.57 billion, rose 6% to $7.54 billion at Collins Aerospace, and gained 4% to $7.16 billion at Raytheon.

RTX sees full-year adjusted EPS of $6.00 to $6.15, and adjusted sales of $83 billion to $84 billion.

Existing Classified Programs Loss Hits Lockheed Martin Results

Lockheed Martin shares sank nearly 8% as the company missed sales estimates and issued weaker-than-expected profit guidance as it took a big charge in the quarter.

Adjusted EPS came in at $7.67, but that excluded an after-tax loss of $5.45 per share for classified programs. Revenue fell 1.3% to $18.62 billion. Analysts surveyed by Visible Alpha expected $18.86 billion.

The loss for existing classified programs at its Aeronautics and Missiles and Fire Control (MFC) business segments came after a review that determined the company would have higher costs in order to meet required milestones.

Lockheed Martin expects full-year EPS in the range of $27.00 to $27.30. The Visible Alpha forecast was for $27.44.

RTX shares traded at an all-time high. Shares of Lockheed Martin remained nearly 8% higher over the last year despite today's selloff.

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