Lockheed Martin beats profit estimates, raises FY forecasts

REUTERS - Lockheed Martin Corp, the Pentagon's No. 1 weapons supplier, reported a better-than-expected quarterly profit, helped by higher sales in its aeronautics division that makes fighter jets.

Shares of the company, which also raised its full-year revenue and profit forecasts, rose 2.6 percent to $296.00 in premarket trading on Tuesday. Lockheed's shares had gained about 15 percent this year through Monday's close.

Lockheed raised its 2017 profit forecast for the second time and said it now expects to earn $12.30 to $12.60 per share. The company in April forecast $12.15 to $12.45 per share.

The company raised it 2017 sales forecast to $49.80 billion to $51.00 billion, from $49.50 billion to $50.70 billion.

Lockheed said sales in its aeronautics business, the company's biggest, rose 19.4 percent during the second quarter.

The F-35 program is the Pentagon's costliest arms program and has been criticized by U.S. President Donald Trump and other U.S. officials for being too expensive.

The company's net income from continuing operations rose about 5 percent to $942 million, or $3.23 per share, in the quarter ended June 25.

Net sales rose to $12.69 billion from $11.58 billion.

Analysts on average had expected a profit of $3.11 per share and revenue of $12.40 billion, according to Thomson Reuters I/B/E/S.

(Reporting by Rachit Vats in Bengaluru; Editing by Sriraj Kalluvila and Maju Samuel)