Lockheed shows strong earnings amid wild stock ride

It has been a roller coaster-like day for Lockheed Martin’s stock price.

It first surged from a company record $288.42 per share at Monday’s close to $291.80 just before noon after Lockheed released its earnings report.

However, shortly after a conference call that included CEO and president Marillyn Hewson and Chief Financial Officer Bruce Tanner the stock dropped — and it closed at $286.68 per share.

In the earnings report, three of Lockheed Martin’s four divisions posted an increase in year-over-year sales, with its Missiles and Fire Control division, one of two based in Orlando, being the lone exception.

Overall, the company took in nearly $200 million more during the quarter than the previous year. That was helped by a $3.8 billion deal for 257 Blackhawk helicopters for the U.S. Army and Saudi Arabian National Guard. Lockheed landed that deal early this month.

Lockheed also recently rolled out its first production runs for Japan and Italy, Hewson said.

“These two events underscore the benefits of multi-national partnerships that have been forged,” she said.

The company also added a $5.6 billion order for its F-35 program, with Hewson saying more orders are expected to come.

Overall, net sales of $12.7 billion during the second fiscal quarter of 2017 outpaced last year’s sales, which reached $11.6 billion.

Net earnings from its operations increased from $899 million to $942 million.

The potential growth in the company’s missile-production system is there, as well, Hewson said: “There is a strong demand in Europe, as well as other parts of the world.”

Lockheed’s Missiles and Fire Control division, which is based in Orlando, posted a drop of 3 percent, or $43 million, over last year.

One of the top defense contractors in the U.S., Lockheed frequently vies for contracts that cover categories such as weapons, vehicles and training for the military. Headquartered in Bethesda, Md., it has several locations across the country.

Saying the company had seen “strong results,” Hewson said in the call that the quarter represented the work put in by employees.

“These returns reflect the high level of execution being achieved across our businesses,” Hewson said during the call.

Lockheed employs more than 7,000 people across three locations in Central Florida, including nearly 1,000 on the Space Coast.