Lockheed Martin stock drops after profit beat expectations but sales falls short

37610 lockheed martin stock drops after profit beat expectations but sales falls short

Shares of Lockheed Martin Corp. LMT, -0.05% dropped 2.9% in premarket trading Tuesday, after the aerospace and defense contractor reported first-quarter profit that beat expectations but sales that fell well short, as all four of its business segments missed expectations. Net income fell to $1.73 billion, or $6.44 a share, from $1.84 billion, or $6.56 a share. The FactSet consensus for earnings per share was $6.11. Sales declined 8.0% to $14.96 billion, missing the FactSet consensus of $15.58 billion. Aeronautics sales rose 0.2% to $6.40 billion, below expectations of $6.50 billion; Missiles and Fire Control sales fell 10.8% to $2.45 billion to miss expectations of $2.65 billion; Rotary and Mission Systems sales fell 13.5% to $3.55 billion to miss expectations of $3.79 billion; and Space sales dropped 15.1% to $2.56 billion, below expectations of $2.63 billion. The company affirmed its full-year guidance for EPS of ~$26.70 and for sales of ~$66,000. The stock, which closed at a record last Thursday, has soared 31.5% year to date through Monday, while the S&P 500 SPX, -0.02% has lost 7.9%.

Source: Marketwatch

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