Lockheed Martin shares surge by 11.4% amid supply chain issues

Lockheed Martin shares surged by 11.4% Tuesday as the defense equipment manufacturer lowered its 2021 revenue guidance after supply chain issues kept its Q3 figures behind expectations.

The maker of F-35 fighter jets cut its 2021 revenue expectation by 2.5%, to $67 billion, and said next year’s revenue could fall to $66 billion.

Net sales declined by around 3%, to $16.02 billion, and came in below expectations. So did the adjusted profit per share of $2.21.

Lockheed raised its current-year EPS guidance to $22.45. The board also approved a $5 billion expansion of the company’s share repurchase program and a hike in quarterly dividend rate to $2.80 per share.