Lockheed Martin (LMT) stock moved lower out of the gate Tuesday after the defense and aerospace manufacturer came up short of top- and bottom-line expectations for its fourth quarter and issued a mixed outlook for the full fiscal year.
In the three months ending December 31, Lockheed Martin's revenue decreased 1.3% year over year to $18.6 billion. Its earnings per share (EPS) declined 70.7% from the year-ago period to $2.22, including a $5.45 per share after-tax impact due to classified-programs losses.
Still, Lockheed Martin CEO Jim Taiclet said "2024 was another successful and productive year for" the company. Its "5% sales growth and record year-end backlog of $176 billion demonstrate the enduring global demand for our advanced defense technology and systems," he noted, adding that LMT's "strong and consistent performance also enabled us to again return greater than 100% of free cash flow to our shareholders in 2024."
From just $107.88 $24.99 for Kiplinger Personal Finance
Be a smarter, better informed investor.
Sign up for Kiplinger’s Free Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
The results came up short of analysts' expectations. Wall Street was anticipating revenue of $18.8 billion and earnings of $6.61 per share, according to Yahoo Finance.
For 2025, Lockheed Martin said it expects to achieve revenue in the range of $73.75 billion to $74.75 billion and earnings per share of $27 to $27.30. The midpoints of these ranges, revenue of $74.25 billion and earnings of $27.15 per share, are mixed compared with the $74.1 billion in revenue and $27.94 per share in earnings Wall Street is calling for.
Is Lockheed Martin stock a buy, sell or hold?
Lockheed Martin has lagged the broad market over the past 12 months, up 20% on a total return basis (price change plus dividends) vs the S&P 500's 25% gain. But Wall Street remains bullish on the industrial stock.
According to S&P Global Market Intelligence, the average analyst target price for LMT stock is $555.30, representing implied upside of nearly 20% to current levels. Additionally, the consensus recommendation is Buy.
Financial services firm Truist Securities is one of the more bullish outfits on the large-cap stock with a Buy rating and $579 price target.
Truist Securities analyst Michael Ciarmoli says LMT's share-price weakness creates a "compelling entry point," and that fears related to potential cost cuts recommended by the Department of Government Efficiency (DOGE) are "overblown" and that "defense spending will continue to rise in coming periods."
He adds that he assumes "LMT management can execute on its 2025 guidance and achieve its multi-year growth framework."
Related Content
- Earnings Calendar and Analysis for This Week
- Analysts' Top S&P 500 Stocks to Buy Now
- Best Stocks To Buy Now
-
Stock Market Winners and Losers of the 'Big, Beautiful' BillDefense, manufacturing and tech should prosper, while health care and green energy stocks face hurdles.
-
I'm a Financial Planner: Here's How to Invest Like the Wealthy, Even if You Don't Have MillionsPrivate market investments, once exclusive to the ultra-wealthy and institutions, have become more accessible to individual investors, thanks to regulatory changes and new investment structures.
-
Four Ways a Massive Emergency Fund Can Hurt You More Than It HelpsSaving too much could mean you're missing opportunities to put your money to work. Redirect some of that money toward paying off debt, building retirement funds, fulfilling a dream or investing in higher-growth options.
-
With Buffett Retiring, Should You Invest in a Berkshire Copycat?Warren Buffett will step down at the end of this year. Should you explore one of a handful of Berkshire Hathaway clones or copycat funds?
-
I'm a Financial Planner: How to Dodge a Retirement Danger You May Not Have Heard AboutTiming is everything, and sequence of returns risk can mean the difference between a retirement nest egg that's overflowing … or empty.
-
Caring for Aging Parents: An Expert Guide to Easing the Financial and Emotional StrainEarly conversations, financial planning and understanding the progression of care needs can help to mitigate stress and protect family relationships.
-
Dow Adds 238 Points as UNH, CAT Pop: Stock Market TodayThe lack of a September jobs report didn't seem to worry market participants, with the data delayed due to the ongoing government shutdown.
-
I'm a Financial Adviser: The OBBB Is a Reminder for Older People to Have a Long-Term PlanThe new tax bill presents a good opportunity for retirees to revisit tax plans, look into doing some Roth conversions and consider plans for long-term care.
