In this quarter, Lockheed Martin (LMT) encountered excessive costs and charges, which led them to fall short of projected results. This means that they didn’t meet expectations as a defense contractor.
Investors were disappointed, sending Lockheed shares down more than 5% as of 10:30 ET Tuesday.
Charges eat into results
Lockheed Martin, known as the world’s leading defense contractor, is currently experiencing tough times. The company responsible for the production of the F-35, various helicopters, missiles, and space systems, has been left out of significant recent contracts, such as the new fighter jet program that was granted to Boeing. As a result, Lockheed Martin’s shares have decreased by approximately 14% from their annual high.
The company’s most recent financial performance isn’t doing much to change its current trend. Lockheed Martins’ Q3 earnings were $1.46 per share, with revenues totaling $18.2 billion, which fell short of the predicted earnings of $6.52 per share and revenues of $18.6 billion by analysts on Wall Street.
The earnings figure appears to be inflated due to significant losses from certain programs, notably a $950 million setback on a top-secret aerospace project. If we exclude these charges, the earnings per share would’ve been approximately $7.29 instead.
In my observation, Lockheed Martin’s free cash flow fell short as they utilized approximately $150 million, contrary to the projected $1.2 billion inflow. This discrepancy was due to the delivery of F-35 aircraft being slower than anticipated.
Is Lockheed Martin stock a buy?
The majority of the charges were one-time expenses, however, it seems that there is no indication for investors that things will get better anytime quickly. Unfortunately, Lockheed’s book-to-bill ratio, which compares future business to current-quarter revenue, was weak at 0.8x, and none of the company’s four segments generated more business in the quarter than what they invoiced.
Lockheed Martin continues to be a dominant player in the industry, promising fresh prospects in the future. However, at present, investors might need to settle for a 3% dividend return as Lockheed navigates through these challenging circumstances.
Read More
- KPop Demon Hunters: Is Your Idol by Saja Boys Inspired by Real K-Pop Bands? Here’s What We Know
- Gold Rate Forecast
- Superman’s Record-Breaking $21M+ Thursday Box Office: Highest of 2025
- 📢 BrownDust2 X BiliBili World 2025 Special Coupon!
- Why Tesla Stock Plummeted 21.3% in the First Half of 2025 — and What Comes Next
- Why Are Nicki Minaj and SZA Really Beefing on X? Fans Left Wondering as Rappers Hurl Insults in Sudden Feud
- Dakota Johnson-Anne Hathaway’s Verity Release Date Out: Here’s When Colleen Hoover’s Movie Adaptation Will Hit the Screens
- Ultraman Live Stage Show: Kaiju Battles and LED Effects Coming to America This Fall
- KPop Demon Hunters Had a Kiss Scene? Makers Reveal Truth Behind Rumi and Jinu’s Love Story
- Justin Bieber Teases New Album ‘SWAG’ with Tracklist Reveal
2025-07-22 19:26