In the quarter, Lockheed Martin repurchased $3 million shares worth $322 million and 21.6 million shares worth $2.1 billion for the year. The spent $460 million on capex during the quarter, and $940 million for whole of 2007.

Earnings Guidance

Lockheed revised its earnings guidance for 2008, baked by forecasts of higher earnings from the aeronautics division.

The military centred firm now expects net sales in the range $41.8 billion to $42.8 billion, up from $42.25 billion to $42.75 billion.

Earnings are now targeted between $7.05 and $7.25, up from $6.95 to $7.15. Lockheed expects pretax earnings of $4.60 billion to $4.53 billion. The company had previously guided earnings before tax of $4.46 billion and $4.59 billion.

Analysts surveyed by Thomson Financial are looking for earnings of $7.29 per share on revenues of $42.80 billion.

""""""""""""""""I''m very proud of our performance across the board in 2007,"""""""""""""""" said Bob Stevens, Lockheed chairman, president and CEO.

""""""""""""""""Our programme execution was solid, we won important new business and we continued to shape a balanced business portfolio--all while achieving outstanding financial performance.”

Share Price Review

Lockheed Martin stocks rose $3.42 or 3.27% to $105.11 in afternoon trading Thursday. The stock has traded in the range $88.86 to $113.74 over the past year. Analysts are now targeting a one-year price of $120.06.

Business Review

Higher weapons expenditure by the U.S. government has lifted sales for most defence contractors in recent years, particularly so in view of the war on Iraq. There are concerns, however, the sector could turn bearish if the U.S withdrew from Iraq.

This week, Northrop reported fourth-quarter sales gained 6% to $32 billion from $30.1 billion. Earnings rose to $454 million or $1.31 per share from $453 million or $1.28 per share in 2006.