Lockheed Martin Stock Drops After Underwhelming Q4 Results
Why LMT Fell Today
Shares of defense and aerospace giant Lockheed Martin (LMT) plunged 8.9% in premarket trading after the company reported disappointing fourth-quarter earnings. Both revenue and earnings missed Wall Street expectations. The full-year EPS guidance also fell short of estimates.
A $1.3 billion loss in the Missiles and Fire Control (MFC) business segment weighed heavily on the quarter's EPS. The market reaction suggests that investors were not impressed with these results.
Market Impact
Lockheed Martin's stock has been relatively stable, with only two previous moves exceeding 5% in the past year. Today's drop indicates that the market considers the news to be significant. However, it remains to be seen if this will result in a fundamental change in perception of the company.
Recent Events
Three months ago, the stock dropped 5.5% after the company missed Wall Street's revenue expectations in its third-quarter report. On the positive side, Lockheed Martin has exceeded analyst estimates for EBITDA and provided higher full-year revenue guidance than expected.
Historical Performance
Year-to-date, Lockheed Martin is down 4.4%. At $461.12 per share, it trades 25% below its 52-week high of $614.61 reached in October 2024. Investors who purchased $1,000 worth of the stock five years ago would now have an investment worth approximately $1,055.