Lockheed Martin Corporation (NYSE: LMT) stock price plunged 11.33% after its third-quarter revenues fell to $16.03 billion, missing analysts estimates of $17.1 billion.
The defence contractor’s earnings per share beat analysts forecasts by coming in at $2.21 versus consensus estimates of $1.97.
Sales in its aeronautics division fell 2% to $6.57 billion as ales for its flagship F-35 fighter jet fell.
The defence firm’s missiles and fire control division has been rapidly growing in recent years, with sales growth surpassing the F-35’s, but even this division registered falling revenues.
Revenue in the missiles and fire control unit fell 6% to $2.78 billion.
Lockheed Martin’s space division also registered lower revenues, which sunk 5% to $2.7 billion. However, while overall sales in the unit fell, sales of hypersonic weapons rose significantly, compensating for some of the lost sales.
Today’s decline seems like an overreaction as investors dumped their LMT shares despite the company’s massive backlog of orders that stood at $147 billion in 2020.
The defence contractor also has multi-year contracts with the US government, which is supposed to take delivery of 133-139 F-35 jets in 2022, and a further 151-153 F-35 jets in 2023.
Lockheed Martin is also looking to grow its missiles & fire control division, a new division created by acquiring Aerojet Rocketdyne.
The company lowered its full-year revenue forecasts to $67 billion compared to the previous figure of $67.3 billion, which also fueled today’s downtrend.
Many analysts expect Lockheed Martin’s sales to recover over the next few quarters, which means that now might be a good time to buy, given the latest decline.
However, always remember that a falling stock could fall much further before reversing course and heading higher.
*This is not investment advice. Always do your due diligence before making investment decisions.
Lockheed Martin stock price.
Lockheed Martin stock plunged 11.33% to trade at $333.70, falling from Monday’s closing price of 4376.35.
Should you invest in Lockheed Martin shares?
If you’re a smart investor, you will know that having large-cap stocks in your portfolio is vital. They are more mature companies, considered safer investments, trade with less volatility, have greater analyst coverage, and in most cases, have a steady dividend stream. Due to the current market environment, we think now is the perfect time to add large-cap stocks to your portfolio. But which large-cap shares should you buy? Our stock analysts regularly review the market and share their picks for some of the best large-caps to invest in
