Lockheed Martin Corp. shares LMT, +0.46% slid 4.9% in premarket trade Tuesday, after the defense contractor’s profit and sales fell and sales missed consensus estimates and the company said it would reassess its five-year business plan. Bethesda, Md.-based Lockheed posted net income of $614 million, or $2.21 a share, less than half the $1.8 billion, or $6.25 a share, posted in the year-earlier period. Sales fell to $16.0 billion from $16.5 billion. The earnings included non-cash pension settlement charges of $1.7 billion, or $4.72 a share after tax. The FactSet consensus was for EPS of $1.97 and sales of $17.1 billion. “We have recently undertaken a reassessment of our five-year business plan given recent external and programmatic events,” CEO James Taiclet said in a statement. “Our conclusions, which are reflected in our updated 2021 guidance and subsequent trend information, reflect continuing strong cash flow generation, but a slight reduction in revenue in 2022 and roughly flat to low-single-digit growth rates in both revenue and segment operating profit over the next few years, with increasing growth opportunities in the years that follow.” The company is now expecting adj. EPS of $27.17, compared with prior guidance of $26.70 to $27.00. It expects sales of $67.0 billion compared with prior guidance of $67.3 billion to $68.7 billion. Shares have gained 5% in the year to date, while the S&P 500 SPX, +0.47% has gained 21.6%.
View Article Origin Here
