Why Lockheed Martin Rallied in October

Shares of Lockheed Martin (NYSE:LMT) rallied 25.1% in October, according to data from S&P Global Market Intelligence.

The largest defense contractor rallied on the back of strong third-quarter earnings last month. On top of the strong results, the company closed longer-term deals with the Department of Defense, earning increased confidence from the analyst community.

In the third quarter, Lockheed saw its revenue rise 11.3% to $20.7 billion, while diluted earnings per share grew 14.6% to $7.95. Both figures handily beat analyst expectations. Management also raised its full-year guidance to a revenue range of $80 billion to $82 billion, up by $250 million on both ends, and diluted EPS to a range of $30.35 to $30.75, up from $29.95 to $30.65 previously.

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