Lockheed Martin reports increased F35 revenue, cuts earnings outlook

Defence contractor Lockheed Martin reported its first-quarter earnings on Tuesday ahead of the bell on Wall Street, seeing increased revenue in its aeronautical business, which includes the F35 program much maligned by President Donald Trump.

The company lowered its full-year earnings outlook however, sending the shares lower in early trading in New York.

Net sales rose 7% to $11.06bn in the first three months of the year, aided by an 8% boost in revenue at its aeronautics business, which includes sales of its F35 fighter jet. US President Donald Trump had criticised federal overspending on programs such as the F35. Lockheed's aeronautics operations makes up around 37% of its business.

Lockheed’s share price fell 2.49% as of 16:11 GMT on Tuesday

Lockheed has vowed to reduce the cost of its F35 program in order to lighten the load on the American taxpayer, despite Trump’s pledges to increase military spending and urging of fellow NATO members to follow suit.

The Maryland firm’s full-year earnings per share guidance was lowered to between $12.15 and $12.45 from a range of $12.25 to $12.55 in its January forecast.

"Our team delivered strong performance for our customers in the first quarter that resulted in sales growth in every business segment," said Lockheed Martin CEO Marillyn Hewson.

"While our net earnings were impacted by certain adjustments, we increased our outlook for full year cash from operations by $300m to at least $6.0bn and we continue to position the company to deliver outstanding value to customers and shareholders."

Lockheed’s share price fell 2.49% as of 16:11 GMT on Tuesday after the results were published.