Lockheed Martin (LMT) shares tanked practically 10% on Tuesday morning after the aerospace and protection producer got here in miles under EPS estimates for its fiscal Q2.
The corporate based mostly out of Fort Price, Texas earned $1.46 a share in its second monetary quarter, nicely under $6.41 per share that analysts had forecast.
Together with as we speak’s decline, Lockheed Martin inventory is down some 17% versus its year-to-date excessive.
LMT missed estimates by an enormous margin in its fiscal Q2 because of an sudden $1.6 billion cost.
About $950 million of it was tied to a labeled aeronautics program going through design, integration, and testing setbacks that worsened within the first half of 2025.
The remaining $570 million hit got here from revised price estimates on the agency’s Canadian Maritime Helicopter Program, pushed by expanded mission necessities and ongoing contract restructuring.
Traders ought to be aware, nevertheless, that each of those fees had been described as one-time changes in Lockheed Martin’s earnings launch on Tuesday.
Subsequently, it’s nicely inside purpose to argue that the selloff in LMT shares as we speak is reasonably overblown and the protection inventory is, in truth, value shopping for on the post-earnings weak spot.
Traders ought to take into account loading up on Lockheed Martin shares at present ranges additionally as a result of the NYSE-listed agency, regardless of falling in need of Q2 earnings expectations, reaffirmed its full-year outlook for gross sales and free money circulation on Tuesday, signaling confidence in its operational outlook.
Moreover, the aerospace and defence producer stays dedicated to repurchasing roughly $3 billion value of its inventory this yr – which can increase shareholder worth within the second half of 2025.
Within the earnings launch, Jim Taiclet, the corporate’s chief govt officer, remained optimistic as nicely, citing elevated world curiosity in protection programs like THAAD, PAC-3, and F-35.
Be aware that LMT inventory at present pays a wholesome dividend yield of three.13%, which makes it all of the extra thrilling to purchasing on the post-earnings pullback.
Regardless of the earnings miss, Wall Road companies additionally stay largely bullish on Lockheed Martin inventory.
