Lockheed Martin Corp. beat expectations with a 20 percent increase in third-quarter net income and raised its full-year profit forecast, although it said revenue would slip next year on likely federal budget cuts.
The Bethesda, Md.-based aerospace and defense company reported a 19 percent gain in earnings in its missiles business, which helped offset roughly flat profit in aeronautics and declines in three smaller units.
The company said net income rose to $873 million, or $2.66 per share, from the year-ago earnings of $727 million, or $2.21 per share. Profit from continuing operations was $2.57 per share. The third-quarter figures included a charge of 5 cents per share to cover job reductions at its former electronic-systems segment.
Analysts had expected $2.27 per share, according to FactSet.
Revenue fell 5 percent to $11.35 billion, but beat analysts' forecast of $11.15 billion.
Lockheed said it now expects full-year earnings of between $9.40 and $9.70 per share, up from its earlier forecast of $9.20 to $9.50 per share. Analysts were expecting $9.51. But Lockheed said that 2014 revenue would decline "slightly."
In premarket activity, shares gained $4.40, or 3.5 percent, to $129.70.
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