Lockheed Misses Q1 Revenue, CEO Expects Temporary Hit

Lockheed Martin, the world’s largest defense contractor, reported a lower-than-expected revenue for the first quarter of 2021. The company’s CEO, James Taiclet, attributed the miss to the ongoing COVID-19 pandemic and supply chain disruptions.

Lockheed Martin’s Q1 revenue came in at $16.3 billion, missing analysts’ estimates of $16.4 billion. The company’s net earnings for the quarter were $1.8 billion, or $6.56 per share, up from $1.7 billion, or $6.08 per share, in the same period last year.

Despite the revenue miss, Taiclet remains optimistic about the company’s future. He expects the impact of the pandemic and supply chain disruptions to be temporary and believes that the company is well-positioned to capitalize on the growing demand for defense and aerospace products.

“We continue to see strong demand for our products and services, and we are confident in our ability to deliver on our commitments to our customers,” Taiclet said in a statement.

Lockheed Martin’s backlog of orders also remains strong, with a total value of $147.1 billion at the end of the first quarter. The company’s F-35 fighter jet program, which has faced numerous delays and cost overruns, also appears to be on track. The company delivered 22 F-35s in the first quarter, up from 17 in the same period last year.

Lockheed Martin’s stock price has been relatively stable in recent months, trading at around $390 per share. The company’s market capitalization is currently around $110 billion, making it one of the largest defense contractors in the world.

Looking ahead, Taiclet said that the company is focused on driving innovation and efficiency across its operations. He also highlighted the company’s commitment to sustainability and diversity, noting that these issues are becoming increasingly important to customers and investors.

“We are committed to being a responsible corporate citizen and to delivering value to all of our stakeholders,” Taiclet said. “We believe that by focusing on innovation, efficiency, sustainability, and diversity, we can continue to grow and thrive in the years ahead.”