By Shivansh Tiwary and Mike Stone
April 23 (Reuters) - U.S. weapons maker Lockheed Martin ( LMT )
beat Wall Street expectations for first-quarter sales
and profit on Tuesday, as simmering geopolitical tensions
prompted some countries to boost their defense spending, driving
demand for new weapons.
Shares of the company, which is considered a bellwether for
the arms sector, rose nearly 2% in premarket trading.
Sales in Lockheed's missiles and fire control unit jumped
25.3% to nearly $3 billion, boosted by strong demand for high
mobility artillery rocket system (HIMARS) and guided multiple
launch rocket system (GMLRS), key weapons used by Ukraine in its
conflict with Russia.
Sales in the company's aeronautics business, its biggest
unit and which makes the F-35 fighter jets, rose 9.2% to $6.85
billion.
"These first-quarter results reinforce our confidence in our
ability to achieve the full-year financial expectations we set
in January," CEO Jim Taiclet said in a statement.
It had forecast full-year net sales of $68.5 billion to $70
billion and a profit of $25.65 and $26.35 per share.
It started the year with a quarterly profit of $6.39 per
share, which was well above analysts' expectations of $5.83 per
share, according to LSEG data.
Lockheed's first-quarter net sales rose 14% to $17.2
billion, also beating analysts' expectations of $16.02 billion.
Last week, the U.S. Missile Defense Agency said Lockheed won
a $17 billion contract to develop the next generation of
interceptors to defend the United States against an
intercontinental ballistic missile attack.
Rivals Northrop Grumman ( NOC ) and General Dynamics ( GD )
are due to report quarterly results later this week.
(Reporting by Pratyush Thakur and Shivansh Tiwary in Bengaluru;
Editing by Anil D'Silva and Savio D'Souza)