Lockheed Martin’s (LMT) third-quarter revenue falls short of Wall Street expectations, and Raytheon Technologies’ (RTX) earnings beat. Defense stocks Northrop Grumman (NOC) and General Dynamics (G.D.) will report third-quarter earnings this week.
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 fighter jet. 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 the withdrawal from Afghanistan and a drop in F-35 production.
Stock: Shares tumbled 11% to 334.57 on the stock market today. 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. withdrawal from Afghanistan had a $75 million impact on the company’s sales.
Stock: Shares fell 2.5% to 89.07. RTX stock fell out of the buy range following earnings after breaking out 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 the market opens Wednesday.
Stock: Shares were down 2.8% to 202.16. GD stock is currently in the buy 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 per share up 2% to $5.99 but revenue dipping 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 powered test flight of 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. NOC stock is extended out of the buy range after breaking out of a flat base with a 379.13 entry point.
