Lockheed Martin (LMT) surpassed quarterly earnings per share (EPS) expectations thanks, in part, to accelerated share repurchase agreements (ASRs). Without the current ASR— which accounted for approximately 40% of the quarter’s total reduction in shares— Lockheed would have missed consensus EPS estimates.

In the quarter ending March 27, 2022, the company posted adjusted EPS of $6.44 which beat the consensus estimate of $0.22. In the footnotes of its latest 10-Q, Lockheed revealed it repurchased more than 4.1 million shares via the ASR. In all, Lockheed’s share repurchases reduced the share count by 10.8 million versus the prior year’s quarter.

The total buyback added $0.25 per share and breaks down like this:

— $0.10 is attributable to the current quarter’s ASR
— $0.05 is attributable to a fourth quarter ASR that settled in the first quarter
— $0.10 is attributable to shares the company repurchased itself

Without the combination Lockheed would have reported an adjusted EPS of $6.19, missing consensus estimates by three cents.

There’s more to come.

The $2 billion ASR that added a nickel to first quarter EPS wasn’t settled until mid-April— after the quarter ended— meaning the additional 600,000 shares delivered to the company will reduce the second quarter’s share count.

Lockheed has $1.9 billion left under its current share repurchase authorization.