Lockheed Martin Raises Annual EPS Guidance But Struggles With Sales; Stock Slips

Lockheed Martin Corp (NYSE:LMT) shares are trading lower after the company reported mixed third-quarter results.

The company reported net sales growth of 1.3% year-over-year to $17.104 billion, missing the consensus of $17.351 billion. Adjusted EPS of $6.84, up from $6.77 in the prior year, topped the consensus of $6.50.

The gross margin expanded 24 bps to 12.4%. The operating profit was $2.14 billion, and the margin increased by 41 bps to 12.5%.

Aeronautics sales were $6.487 billion (-3% YoY), and the operating margin was 10.2%, up from 10% YoY. Missiles and Fire Control sales of $3.175 billion (+8% YoY); operating margin was 14.4%, up from 13.5% YoY.

Rotary and Mission Systems sales of $4.367 billion (+6% YoY); operating margin 11.1%, down 60 bps. Space net sales of $3.075 billion (-1% YoY); operating margin 8.8%, up 40 bps.

Lockheed Martin generated operating cash flow for the ...