Shareholders Sold Shares of These 2 Defense Stocks Following Earnings

Lockheed Martin (NYSE:LMT) reported its results for the fourth quarter. Net income from continuing operations for the aerospace/defense products and services company fell to $698 million ($2.14 per share) vs. $983 million ($2.28 per share) a year earlier. This is a decline of 29% from the year earlier quarter. Revenue fell 4.6% to $12.21 billion from the year earlier quarter. LMT beat the mean analyst estimate of $1.94 per share. Analysts were expecting revenue of $12.31 billion.

“Our continued focus on executing our customers’ programs domestically and internationally resulted in a strong year with a record backlog,” said Bob Stevens, chairman and chief executive officer. “We will need to remain agile in 2012 given the uncertainties ahead, but I am confident that our workforce and diversified portfolio will enable us to continue to deliver value to our customers and shareholders.”

Competitors to Watch: Astrotech Corp. (NASDAQ:ASTC), The Boeing Company (NYSE:BA), Northrop Grumman Corp. (NYSE:NOC), General Dynamics Corp. (NYSE:GD), Alliant Techsystems Inc. (NYSE:ATK), Raytheon Company (NYSE:RTN).

Raytheon Company (NYSE:RTN) reported net income above Wall Street’s expectations for the fourth quarter.  Net income for the aerospace/defense company rose to $546 million ($1.58 per share) vs. $499 million ($1.25 per share) in the same quarter a year earlier. This marks a rise of 9.4% from the year earlier quarter. Revenue fell 6.4% to $6.44 billion from the year earlier quarter. RTN reported adjusted net income of $1.74 per share. By that measure, the company beat the mean estimate of $1.34 per share. It fell short of the average revenue estimate of $6.73 billion.

“In a year of economic uncertainty, the Raytheon team focused on what we do best – ensuring customer success through program performance and product innovation,” said William H. Swanson, Raytheon’s Chairman and CEO. “Improved efficiencies and lower costs drove operating margin and earnings performance, while global demand for our affordable solutions resulted in strong orders.”

Competitors to Watch: The Boeing Company (NYSE:BA), Northrop Grumman Corp. (NYSE:NOC), General Dynamics Corp. (NYSE:GD), Lockheed Martin Corp. (NYSE:LMT), Kratos Defense & Security Solutions, Inc (NASDAQ:KTOS), ITT Corporation (NYSE:ITT), Rockwell Collins, Inc. (NYSE:COL), Honeywell Intl. Inc. (NYSE:HON), FLIR Systems, Inc. (NASDAQ:FLIR), and Alliant Techsystems Inc. (NYSE:ATK).

To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com