Lockheed Martin’s (LMT) third-quarter revenue falls short ofexpectations, and Raytheon Technologies’ (RTX) earnings beat. Defense stocks Northrop Grumman (NOC) and General Dynamics (G.D.) will report third-quarter earnings this .
LMT Stock Tumbles After Revenue Miss
Estimates: FactSet analysts saw Lockheed earnings falling 68.5% to $1.97 per share. But revenue is seen edging up 3.8% to $17.1 billion.
Results: Lockheed’s earnings fell to $2.21 on revenue of $16.03 billion.
Aeronautics segment sales fell 2% to $6.57 billion on lower net sales in the F-35 program.
Lockheed Martin’s biggest moneymaker is its F-35. But its missiles and fire control unit have been its fastest-growing segment in recent quarters. However, that segment saw its revenue fall by 6% to $2.78 billion.
Revenue at the space unit fell 5% to $2.7 billion. Lockheed said the development of its hypersonic weapon partially offset the drop in sales. The company has six hypersonic weapons programs, and CEO Jim Taiclet told analysts he has “multiple” programs starting production between 2023 and 2026.
The company developed hypersonic weapons and opened a new factory in Alabama for hypersonic missile production earlier this month. Unlike ballistic missiles, which fly in a predictable arc, hypersonic weapons fly five times the speed of sound — or Mach 5 — in unpredictable flight paths, making them difficult to defend against.
Outlook: Lockheed sees full-year sales of $67 billion, down from a previous view of $67.3 billion to $68.7 billion, due to theand a drop in F-35 production.
Stock: Shares tumbled 11% to 334.57 on thetoday. According to MarketSmith analysis, LMT stock is running up the right side of consolidation with a 397.09 entry point.
Raytheon Technologies Earnings Beat
Estimates: Raytheon’s earnings per share are soaring 88% to $1.09, with revenue up 11% to $16.4 billion.
Results: Raytheon reported an EPS of $1.26 on revenue of $16.2 billion.
During the analyst call, CEO Greg Hayes said that the U.S.had a $75 million impacted the company’s sales.
Stock: Shares fell 2.5% to 89.07. RTXout of a flat base with an 89.98 entry point earlier this month.
General Dynamics Earnings
Estimates: Analysts see General Dynamics earnings edging up 3% to $2.98, with revenue up 4.3% to $9.8 billion.
Results: Check back before theWednesday.
Stock: Shares were down 2.8% to 202.16. G.D.range after breaking out of a flat base with a 206.56 entry point.
Boeing (B.A.) will also report Q3 results early Wednesday.
Northrop Grumman Earnings
Estimates: Analysts see Northrop earnings perdipping 0.7% to $8.93 billion.
Like Lockheed, Northrop is working on its hypersonic weapons. In late September, Northrop and Raytheon Technologies (RTX) completed the first poweredof their Hypersonic Air-Breathing Weapon Concept for the Air Force.
Results: Check back before the market opens Thursday.
Stock: Shares slid 2.7% to 395.82 Tuesday. NOCrange after breaking out of a flat base with a 379.13 entry point.