Pentagon’s prime contractor, Lockheed Martin Corp. LMT, reported adjusted first-quarter 2016 earnings before the opening bell today. The company reported quarterly earnings of $2.58 per share, surpassing the Zacks Consensus Estimate of $2.51 by 2.8%. Earnings, however, decreased 5.84% from the year-ago level. Operational HighlightsIn the reported quarter, total revenues came in at $11.7 billion, beating the Zacks Consensus Estimate of $11.09 billion by 5.5%.The company’s revenues also increased 16% from $10.11 billion a year ago. All segments, except Space Systems and Information Systems & Global Solutions, registered year-over-year sales growth.BacklogLockheed Martin ended the first quarter (on Mar 27, 2016) with $97.9 billion in backlog, down 1.7% from $99.6 billion at 2015 end. Of this, a $30.7 billion share went to the Aeronautics segment while Mission Systems and Training accounted for $29.8 billion. The rest comprised $17.8 billion for Space Systems, $15.1 billion for Missiles and Fire Control, and $4.5 billion for Information Systems & Global Solutions.Quarterly Segmental PerformanceAeronautics: Quarterly sales increased 21% year over year to $3.8 billion, mainly on F-35 production contracts and sustainment activities as well as from the C-130 and C-5 program during the quarter.Operating profit also advanced 13.2% year over year to $420 million while operating margin decreased 70 basis points (bps) to 11.1%.Information Systems & Global Solutions: Quarterly sales decreased 4% to approximately $1.3 billion. The decline reflects the impact of lower volume on certain government IT support service programs and heightened competition.Operating profit came in at $109 million, down 24.8% year over year and operating margin contracted 220 bps to 8.2%. Missiles and Fire Control: Quarterly sales increased 3.7% year over year to $1.4 billion. The increase reflects higher net sales from tactical missile programs and fire control programs. However, operating profit decreased 22.7% year over year to $221 million and operating margin declined 530 bps to 15.4%.Mission Systems and Training: Quarterly sales of $3 billion increased 51.8% from the prior-year quarter. The growth primarily reflects higher revenues from Sikorsky.However, operating profit increased 27.2% year over year to $229 million but operating margin contracted 150 bps to 7.6%.Space Systems: Sales decreased 4.2% year over year to about $2.1 billion in the first quarter. The decrease reflects lower sales from various government satellite programs.Operating profit declined to $244 million from $324 million a year ago while operating margin decreased 310 bps to 11.5% in the quarter.Financial ConditionCash and cash equivalents were $1.45 billion at first-quarter end compared with $1.09 billion at 2015 end. Long-term debt rose to $14.32 billion from $14.31 million at 2015 end.Cash from operations in the first quarter was $1.56 billion compared with $957 million in the year-ago quarter.During the quarter, the company repurchased 2.4 million shares for $501 million compared with 3 million shares repurchased for $604 million a year ago.GuidanceLockheed Martin raised its 2016 outlook with revenues expected to be in the range of $49.6 billion to $51.1 billion (earlier projection: $49.5 billion to $51 billion), earnings per share of $11.50–$11.80 (earlier projection: $11.45–$11.75) and operating profit of $5,625–$5,775 million (earlier projection: $5,600–$5,750 million).Lockheed expects cash from operations of approximately $5.4 billion for the year (earlier projection: $5.3 billion).Upcoming Peer ReleasesThe Boeing Co. BA, General Dynamics Corp. GD and Northrop Grumman Corp. NOC are slated to report first-quarter 2016 results on Apr 27, before the opening bell.Zacks RankLockheed Martin carries a Zacks Rank #3 (Hold).Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report NORTHROP GRUMMN (NOC): Free Stock Analysis Report BOEING CO (BA): Free Stock Analysis Report GENL DYNAMICS (GD): Free Stock Analysis Report LOCKHEED MARTIN (LMT): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research