Lockheed Martin's Earnings Miss Expectations Amid F-35 Delays
Lockheed Martin's forecast for 2025 profits fell short of Wall Street estimates, raising concerns about potential impacts of supply chain issues and program delays.
Key Financial Highlights:
* Expected profit per share in 2025: $27 to $27.30
* Missed analysts' consensus of $27.92 per share
* Net income of $527 million in Q4 2023, a 71% decline year-over-year
* Total sales of $18.62 billion in Q4 2023, slightly below the previous year
Factors Impacting Performance:
* Delays in the rollout of a technology upgrade for the F-35 fighter jet
* Ongoing supply chain issues stemming from the pandemic
* Potential uncertainty over future defense spending priorities
Market Reaction:
* Lockheed Martin shares dropped by approximately 4% in premarket trading
Political Landscape:
* President Trump's anticipated increase in defense spending could provide potential growth opportunities
* Formation of the Department of Government Efficiency and critical statements about the F-35 program by Elon Musk have dampened investor sentiment
Outlook:
* Lockheed Martin's aeronautics business, which produces the F-35, reported a 40% decrease in operating profit in Q4 2023
* The F-35 program accounts for around 30% of the company's revenue