Shares of Lockheed Martin Corporation (NYSE: LMT) have been down over 2 percent in Tuesday's trading session following the announcement that the company will be separating its global solutions and information systems unit and merging it with Leidos Holdings Inc (NYSE: SAI).
At the time of this publication, Lockheed Martin's stock is trading lower by 1.86 percent at $207.09.
The Separation And Merger
"The combination of our proven IT and technical services businesses with Leidos will create a new leader in the government IT sector [...] greater scale and improved efficiency," stated Lockheed Martin Chairman, President and CEO Marillyn Hewson.
Lockheed Martin is expected to receive a one-time payment of $1.8 billion from the deal and own a 50.5 percent equity stake in the energy company Leidos valued at 3.2 billion.
On Tuesday, the Bethesda, Maryland-based company posted its Q415 earnings of $3.01 per share, up from its previous earnings of $2.82 per share for the year-prior quarter. The company's net earnings were $3.6 billion in 2015, or $11.46 per share, compared to $3.6 billion in 2014.
Lockheed Martin's revenues increased to $12.92 billion from $12.53 billion year-over-year. The company's revenues in 2015 were $46.1 billion, compared to $45.6 billion in 2014.
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