Lockheed Martin (LMT) stock fell nearly 7% in pre-market trading on Tuesday after the company reported second-quarter results that missed Wall Street expectations. In the second quarter, the company posted EPS (earnings per share) of $1.46, significantly missing the consensus estimate of $6.54. Meanwhile, revenues reached $18.2 billion, below the consensus estimate of $18.58 billion. The sharp miss raised questions about cost pressures and project timing within the company’s defense programs.
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Program Setbacks Drag Down Lockheed’s Q2 Earnings
Lockheed Martin’s significant earnings shortfall was largely due to pre-tax charges totaling $1.6 billion across several programs, which cut EPS by $5.83. These included a $950 million hit tied to a classified Aeronautics project, a $570 million loss from the Canadian Maritime Helicopter Program, and a $95 million setback on the Turkish Utility Helicopter Program. The company also recorded $169 million of other charges.
Justifying the charges, Lockheed Martin Chairman, President, and CEO Jim Taiclet said they were necessary to improve execution across key programs.
Lockheed Martin Reaffirms 2025 Outlook
Despite the earnings miss, Lockheed Martin reaffirmed its 2025 sales outlook of $73.75–$74.75 billion, aligning with analysts’ $74.4 billion estimate.
However, it slashed its full-year EPS forecast to $21.70–$22.00, down sharply from its prior guidance of $27.00–$27.30 and below the $27.46 analyst consensus.
Is Lockheed Martin a Good Stock to Buy?
On TipRanks, LMT stock has a consensus Moderate Buy rating based on five Buys and seven Holds assigned in the last three months. The average Lockheed Martin stock price target of $521.92 implies an upside of 13.3% from current levels. Year-to-date, LMT stock has declined by over 5%.
It’s important to note that these ratings could be revised following the company’s Q2 results.
