Lockheed Martin Stock Crashes As 2025 Profit Outlook, Q4 Sales Disappoint: Retail’s Still Bullish

synopsis

Lockheed Martin (LMT) shares fell 8.1% on Tuesday after the aerospace and defense equipment maker forecasted 2025 earnings below Wall Street estimates.

The company said its 2025 earnings would be between $27 and $27.30 per share, compared with the market estimate of $27.94 per share, according to FinChat data.

It also projected net 2025 sales in the range of $73.75 billion to $74.75 billion, while analysts on average expected $74.08 billion.

Since President Donald Trump’s victory in the U.S. elections, Lockheed shares have been pressured by concerns that the Department of Government Efficiency, co-headed by Musk, could look to curb spending at the Pentagon.

During the fourth quarter, the company reported net sales of $18.62 billion, which also missed an estimated sales of $18.79 billion.

Its quarterly earnings slumped 71% to $527 million, as it took a $1.29 billion hit to profit in its aeronautics, missiles, and fire control business units.

The loss was due to increased project costs beyond initial estimates, which Lockheed had to absorb because of its fixed-price customer contracts.

Lockheed’s aeronautics division net sales rose 5% to $396 million during the fourth quarter, attributable to higher net sales on the F-35 fighter jets program.

On an adjusted basis, it reported earnings of $7.45 per share and beat Street estimates of $6.62 per share.

Retail sentiment on Stocktwits still rose to ‘bullish’ (58/100) territory from ‘bearish’(35/100) a day ago, while retail chatter jumped to ‘extremely high.’

LMT’s Sentiment Meter and Message Volume as of 10:09 a.m. ET on Jan. 28, 2025 | Source: Stocktwits

Investors hoped that the company’s fortunes would improve and expressed surprise over the stock performance on Tuesday.

Over the past year, the stock has gained 8.6%.

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