Lockheed Martin Shares Slide on Q1 Earnings Miss and Defense Sector Headwinds

Key Facts

Lockheed Martin shares have extended their decline for nine consecutive days, falling approximately 20% from recent peaks. Net earnings dropped to $1.5 billion with an EPS of $6.44, while investors expressed growing concern over a deteriorating book-to-bill ratio. Despite these operational headwinds, the company's backlog remains robust at $186 billion, providing some revenue visibility. While Lockheed Martin, RTX, and Northrop Grumman reported surging missile sales due to global conflicts, market sentiment remains weighed down by anticipated capital expenditure needs. The stock is currently trading at $555, with a fair value target of $613 by December 2028. Management maintains its long-term free cash flow outlook despite the persistent downward pressure on the share price.

Version History