What's Happening With Lockheed Martin Stock?

Core Insights - Lockheed Martin reported Q3 2024 revenues of $17.1 billion, a 1% year-over-year increase, and adjusted earnings of $6.84 per share, exceeding estimates of $17.0 billion and $6.50 respectively [2][3] Financial Performance - Aeronautics segment sales declined by 3% due to lower F-35 production contracts [2] - Missiles and Fire Control segment sales increased by 8% driven by higher production for Guided Multiple Launch Rocket Systems and Long Range Anti-Ship Missile programs [2] - Rotary and Mission Systems sales rose by 6% due to increased demand for integrated warfare systems and sensors [2] - Space segment revenue fell by 1% due to lower volume for the Orion program [2] - Operating margin improved by 40 basis points to 12.5%, contributing to a 1% year-over-year rise in earnings per share [2] Outlook and Valuation - Lockheed Martin raised its full-year sales outlook to $71.25 billion and earnings to $26.65 per share, up from previous guidance of $71.0 billion and $26.35 [2] - The company's valuation is estimated at $572 per share, based on a 21x P/E multiple, which is higher than its average P/E multiple of 17x over the last five years [4] Stock Performance - Despite better-than-expected earnings, Lockheed Martin's stock fell by 6% following the Q3 results due to a top-line miss against consensus estimates [3] - The stock has risen 29% year-to-date, outperforming broader market gains of 23% [5] - Lockheed Martin's stock performance has been volatile compared to the S&P 500 over the last three years [5]