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Lockheed Martin Corporation (LMT), headquartered in Bethesda, Maryland, is a global security and aerospace company that develops and integrates advanced technology systems. Valued at $114.2 billion by market cap, the company produces advanced military aircraft, missile defense systems, helicopters, satellites, and cyber and space-based technologies. The world's largest defense contractor is expected to announce its fiscal fourth-quarter earnings for 2024 before the market opens on Tuesday, Jan. 28.
Ahead of the event, analysts expect LMT to report a profit of $6.58 per share on a diluted basis, down 16.7% from $7.90 per share in the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports.
For the full year, analysts expect LMT to report EPS of $26.79, down 3.7% from $27.82 in fiscal 2023. However, its EPS is expected to rise 4.6% year over year to $28.03 in fiscal 2025.
LMT stock has underperformed the S&P 500’s ($SPX) 26.3% gains over the past 52 weeks, with shares up 4.9% during this period. Similarly, it underperformed the Industrial Select Sector SPDR Fund’s (XLI)19.4% gains over the same time frame.
Lockheed Martin's underperformance stems from labor shortages impacting delivery timelines, U.S. sanctions affecting its Türkish Utility Helicopter Program contracts, and performance issues with the Canadian Maritime Helicopter Program. These challenges have led to a share price decline, reflecting investor concerns about LMT's operational and financial performance.
On Oct. 22, LMT shares closed down more than 6% after reporting its Q3 results. Its adjusted EPS of $6.84 surpassed Wall Street expectations of $6.47. The company’s revenue was $17.1 billion, missing Wall Street forecasts of $17.3 billion. LMT expects full-year EPS to be $26.65, and it expects revenue to be $71.3 billion.
Analysts’ consensus opinion on LMT stock is moderately bullish, with a “Moderate Buy” rating overall. Out of 21 analysts covering the stock, 10 advise a “Strong Buy” rating, one suggests a “Moderate Buy,” nine give a “Hold,” and one recommends a “Strong Sell.” LMT's average analyst price target is $598.43, indicating a potential upside of 24.2% from the current levels.
