Shares of Lockheed Martin Corporation was up 2.5 percent during early sessions Tuesday, after the company posted better than projected quarterly sales and increased its 2020 profit forecast to $65 billion.
The figures beat Wall Street's estimates of around $62.6 billion, as the United States' leading weapons supplier's late results gained from strong missile and jet revenues and heightened tensions in the Middle East.
The defense and aerospace contractor reported sales of $16 billion, which also exceeded analysts' projections. Four stock observers polled by Zacks saw a $15.2 billion profit.
For the current year, Lockheed Martin posted profits of $6.2 billion, or $21.9 a share and expects full-year earnings to hit $23.6 to $23.9 a share.
Frictions between Washington and Tehran in the last few weeks have helped lift momentum for defense acquisitions, benefiting Lockheed Martin and other weapons manufacturers, analysts noted.
Its business division, the Missiles and Fire Control Systems, enjoyed sales of over 14 percent this month on surging volume for tactical and strike missiles.
Lockheed's shares rallied around 4.5 percent to a record peak earlier, after a US drone strike killed Iran's top military general Qassem Soleimani.
Other defense companies like Northrup Grumman and General Dynamics are estimated to outperform this year, in connection with the market's general trend during presidential election season.
Lockheed Martin's stocks have climbed 11 percent since the start of 2020, while Standard & Poor's 500 Index has remained almost unchanged. Lockheed's stock has rallied 51 percent in the last four quarters.
During the period, the US Defense Department announced price details for a deal with Lockheed that cuts the cost of the F-35A combat aircraft it plans to buy through 2022 by 12.8 percent.
The Maryland defense giant's Aeronautics Division, which builds the F-35 fleet, had a quarterly sales increase of 9 percent to $6.3 billion.
The F-35 comes in three models, the A-Model for the US Air Force and US NATO allies; the F-35 B Type capable of vertical landings and short takeoffs; and the carrier type F-35C for the US Navy.
Under the contract, the F-35A - the most widely-used configuration in service, will each have a price tag of $82.4 million for the current year, $79.17 million next year, and almost $78 million in 2022.
The Pentagon's F-35 program, which comprises around a quarter of Lockheed's yearly profits, rolled out a total of 134 of the stealthy planes last year and targets to build 141 more in the coming months.
