Lockheed Martin Corp (NYSE:LMT) stock fell 0.12% (As on April 24, 11:19:03 AM UTC-4, Source: Google Finance) after the company beat Wall Street expectations for first-quarter sales and profit, as simmering geopolitical tensions prompted some countries to boost their defense spending, driving demand for new weapons. Sales in Lockheed’s missiles and fire control unit jumped 25.3% to nearly $3 billion, boosted by strong demand for high mobility artillery rocket system (HIMARS) and guided multiple launch rocket system (GMLRS), key weapons used by Ukraine in its conflict with Russia. Sales in the company’s aeronautics business, its biggest unit and which makes the F-35 fighter jets, rose 9.2% to $6.85 billion. Rotary and Mission Systems net sales in the first quarter of 2024 increased 16% compared to the same period in 2023. The delay in resuming deliveries of its marquee F-35 jet to Pentagon due to the TR-3 software upgrade has left Lockheed with fighter jets in its inventories. TR-3 refers to a series of enhancements to the F-35, encompassing improved displays, increased computer memory and enhanced processing capabilities.

LMT in the first quarter of FY 24 has reported the adjusted earnings per share of $6.39, beating the analysts’ estimates for the adjusted earnings per share of $5.83, according to LSEG data. The company had reported the adjusted revenue growth of 13.7 percent to $17.2 billion in the first quarter of FY 24, beating the analysts’ estimates for revenue of $16.02 billion. Net earnings in the first quarter of 2024 were $1.5 billion compared to $1.7 billion, in the first quarter of 2023. Cash from operations was $1.6 billion in both the first quarters of 2024 and 2023. Free cash flow was $1.3 billion in both the first quarters of 2024 and 2023.

Additionally, last week, the U.S. Missile Defense Agency said Lockheed won a $17 billion contract to develop the next generation of interceptors to defend the United States against an intercontinental ballistic missile attack. In addition, LMT has signed a landmark AUD$500 million contract with the Department of Defence to build Australia’s future Joint Air Battle Management System under project – AIR6500 Phase 1 (AIR6500-1). This system will provide Defence with an advanced integrated air and missile defence capability, using next-gen technologies, to combat high-speed threats.

It had forecast full-year net sales of $68.5 billion to $70 billion and profit of $25.65 to $26.35 per share.