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With a market cap of $101.4 billion, Lockheed Martin Corporation (LMT) is a leading aerospace and defense company that provides advanced technology systems and services worldwide. It operates through four segments - Aeronautics; Missiles and Fire Control (MFC); Rotary and Mission Systems (RMS); and Space, offering solutions in military aircraft, missile defense, helicopters, space systems, and cyber security.
The Bethesda, Maryland-based company is expected to announce its fiscal Q1 2025 earnings results before the market opens on Tuesday, Apr. 22. Ahead of this event, analysts expect LMT to report a profit of $6.42 per share, up 1.4% from $6.33 per share in the year-ago quarter. It has surpassed Wall Street's earnings estimates in the last four quarters. In Q4 2024, Lockheed Martin beat the consensus EPS estimate by 16.2%.
For fiscal 2025, analysts expect the world’s largest defense contractor to report an EPS of $27.15, down 4.6% from $28.47 in fiscal 2024. However, EPS is anticipated to grow 9.1% year-over-year to $29.63 in fiscal 2026.
Shares of LMT have declined 7.6% over the past 52 weeks, lagging behind both the S&P 500 Index's ($SPX) 1.4% dip. But, the stock has slightly performed better than the Industrial Select Sector SPDR Fund’s (XLI) 7.7% drop over the same period.
Despite reporting better-than-expected Q4 2024 adjusted EPS of $7.67, Lockheed Martin shares dropped 9.2% on Jan. 28 because GAAP EPS was only $2.22, far below the $6.62 forecast, driven by $1.7 billion in pre-tax losses from classified programs. Revenue came in at $18.6 billion, missing the estimate, and free cash flow dropped sharply to $441 million. The Aeronautics segment's operating profit plunged 43%, and Missiles and Fire Control swung from a $395 million profit to an $804 million loss due to classified project setbacks.
Moreover, the stock plunged 5.8% on Mar. 21 after losing a $20 billion F-47 fighter jet contract to Boeing. The loss, combined with lingering concerns over F-35 program cost overruns and growing scrutiny of defense spending under the new Department of Government Efficiency (DOGE) program.
Analysts' consensus view on Lockheed Martin’s stock is cautiously optimistic, with a "Moderate Buy" rating overall. Among 22 analysts covering the stock, nine recommend "Strong Buy," 12 suggest "Hold," and one advises "Strong Sell." As of writing, LMT is trading below the average analyst price target of $525.73.
