Lockheed Martin Corporation (NYSE:LMT) stock rose 1.39% (As on October 19, 11:45:15 AM UTC-4, Source: Google Finance) after the company reported better-than-expected quarterly revenue, helped by higher sales in its aeronautics unit which makes the F-35 fighter jet, as the company sees demand for arms increasing after Russia’s invasion of Ukraine. Still, pandemic-related supply chain challenges have continued. Lockheed’s largest unit, aeronautics, which also makes the F-16 jet, was hit by difficulties obtaining key components in the first part of the year, hampering production volume. Compared to the same quarter a year ago sales at aeronautics, which makes the F-35, rose 7.6% to $7.1 billion. Profit margins in the unit fell slightly from 10.9% to 10.7% compared with the same quarter last year. Sales at the Missiles and Fire Control unit, which makes HIMARS launchers, were up 1.8% to $2.83 billion, but profit margins fell slightly compared with the same quarter a year ago. Space Systems Sales increased 7% year over year to $2.88 billion in the third quarter on account of higher sales from strategic and missile defense programs. Rotary and Mission Systems Quarterly revenues declined 5% on a year-over-year basis to $3.78 billion. The decrease was primarily due to lower sales for various C6ISR programs and Sikorsky helicopter programs.

Lockheed Martin ended the third quarter of 2022 (on Sep 25, 2022), with $139.71 billion in backlog compared with $134.64 billion at the end of second-quarter 2022. Of this, the Aeronautics segment accounted for $48.16 billion, while Rotary and Mission Systems contributed $35.03 billion. Meanwhile, Space Systems and the Missiles and Fire Control segments contributed $28.45 billion and $28.08 billion, respectively. Lockheed Martin’s cash and cash equivalents totaled $2.43 billion at the end of third-quarter 2022 compared with $3.60 billion at the end of 2021. Cash from operating activities at the end of third-quarter 2022 amounted to $5.87 billion compared with $4.95 billion a year ago.

LMT in the third quarter of FY 22 has reported the adjusted earnings per share of $6.71, beating the analysts’ estimates for the adjusted earnings per share of $6.67,  according to Refinitiv data. The company had reported the adjusted revenue of $16.6 billion in the third quarter of FY 22.

The company maintained its 2022 revenue guidance of $65.25 billion despite lingering supply chain related headwinds. In July, Lockheed revised the figure down from $66 billion.