The top line is likely to be hurt by the non-accrual of orders into ample revenue recognition. The increases in the F-35, F-16 and F-22 programs helped by higher volumes could be the driving factor of the Aeronautics segment sales. Meanwhile, the division is likely to face with a decline in sales due to non-completion of orders. Also, the segment will experience lower production volume for the C-5 aircraft.
In Missiles and Fire Control segment, sales could be driven by tactical and strike missiles programs as well as sensors and global sustainment programs. However, integrated air and missile defense programs could negatively impact the segment.
Lockheed Martin tops Q3 estimates; raises guidance
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In the Space segment, government satellite programs, strategic and missile defense programs and the Orion program could be the driving factor to the sales growth. The higher volume from the strategic and missile defense programs could be offset by the weak volumes forecast in the government and commercial satellite programs.
Lockheed Martin is likely to provide or update its full-year 2019 guidance. Net sales growth was predicted to be around 5% to 6% and total business segment operating margin was expected to be 10.5% to 10.8%. Cash from operations was anticipated to be greater than or equal to $7 billion.
Shares of Lockheed Martin opened higher on Thursday and is trading in the green territory. The stock has fallen over 13% in the past year and over 8% in the past three months.