Lockheed Martin Pre-Earnings: Revenue Growth To Continue, Margins To Improve

The defense contractor is coming off a good second quarter in which its revenues grew by 3% year over year to $11.6 billion. In the third quarter, we believe the company to continued to grow its profit as it cut costs and improved production. Additionally, we expect that the company will post higher than projected sales and orders as 65% of its orders are planned for the second half of the year. Gains from past cost cuts will also provide some tailwind to Lockheed's third quarter bottom line.