Investing.com - Lockheed Martin (NYSE:LMT) impressed with its first quarter earnings Tuesday, with the defense sector proving resilient during this coronavirus-inspired economic slowdown.
Lockheed Martin announced earnings per share of $6.08 on revenue of $15.65 billion, compared with expectations of $5.78 EPS and revenue of $15.09 billion and EPS of $5.73 on revenue of $14.34B in the same period a year before.
"As we confront the challenges introduced by the global pandemic, our corporation remains focused on providing vital national security solutions for our customers while maintaining a safe and healthy environment for our employees," said Lockheed Martin chairman, president and CEO Marillyn Hewson.
Shares in Lockheed traded 2% higher premarket, at $3.91/share.
"Except for some short-term disruptions due to the pandemic, Lockheed Martin is on strong financial footing and capable of weathering a potential recession. The company should continue to benefit from the U.S. government’s increased defense spending, especially when the geopolitical situation remains tense," said Haris Anwar, an analyst at Investing.com.
An example of this geopolitical tension came from the announcement that two U.S. warships were operating in the South China Sea, amid a standoff between China and Malaysia.
"The company has a strong pipeline of offerings, including its F-35 fighter jets which are Lockheed’s largest source of profit,” Anwar added.