LMT Lockheed Martin Corp

Lockheed Martin on Tuesday reported that its revenue surged more than expected in the latest quarter as it completed the sale of its information systems and global solutions business.

The security and aerospace company also boosted its quarterly dividend 10% to $1.82 per share and increased its share repurchase program by $2 billion.

During the most recent period, revenue in Lockheed Martin's aeronautics business—its biggest—rose 6.8% to $4.19 billion on higher F-35 sales. Meanwhile, revenue in its mission systems segment surged 55% thanks to the addition of helicopter maker Sikorsky Corp., which it bought last year. Performance in those two segments offset more tepid sales in the company's IT and space systems businesses.

In all for the September quarter, Lockheed reported a profit of $2.4 billion, or $7.93 a share, up from $865 million, or $2.77 share, a year earlier. Revenue shot up 15% to $11.55 billion, topping analyst estimates for $11.45 billion.

Maryland-based Lockheed has been working to reshape its business as it looks to focus on more profitable work building military jets, helicopters and missiles. Last year Lockheed bought Sikorsky for $9 billion, and it said earlier this year that it would divest its big government information-technology unit and merge it with Leidos Holdings Inc., a deal the company said Tuesday closed Aug. 16. As part of the transaction, Lockheed Martin reduced its share count by about 3% or 9.4 million shares.

The company also updated its guidance for the year excluding that business. Lockheed Martin now expects earnings of about $12.10 a share on revenue of $46.5 billion. It previously forecast $11.15 to $11.45 a share on $45 billion to $46.2 billion in sales. Including the business, Lockheed had forecast $12.15 to $12.45 in earnings per share, up on $50 billion to $51.5 billion in revenue this year.

Shares, inactive premarket, have risen 6.9% so far this year.

Write to Anne Steele at Anne.Steele@wsj.com

(END) Dow Jones Newswires

October 25, 2016 09:35 ET (13:35 GMT)

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