Lockheed Martin ( (LMT) ) has fallen by -8.55%. Read on to learn why.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Lockheed Martin has experienced a significant stock price decline of 8.55% over the past week, following a disappointing second-quarter earnings report. The company’s earnings per share (EPS) fell short of Wall Street expectations, coming in at $1.46 compared to the anticipated $6.54. This shortfall was largely attributed to pre-tax charges totaling $1.6 billion across several programs, including a $950 million hit from a classified Aeronautics project and a $570 million loss from the Canadian Maritime Helicopter Program.
Despite these setbacks, Lockheed Martin has reaffirmed its 2025 sales outlook, projecting revenues between $73.75 billion and $74.75 billion, in line with analysts’ estimates. However, the company has revised its full-year EPS forecast downward to $21.70–$22.00, significantly lower than the previous guidance of $27.00–$27.30. This adjustment has raised concerns among investors about the company’s ability to manage cost pressures and project timing effectively.
In addition to financial challenges, Lockheed Martin is exploring new opportunities in the critical minerals supply chain by leveraging its seabed licenses in the Pacific Ocean. This strategic move aims to capitalize on the growing demand for minerals used in defense and advanced technology. While the company faces hurdles, analysts maintain a Moderate Buy rating on Lockheed Martin stock, with a consensus price target suggesting potential upside from current levels.