Lockheed Martin Shares Drop 12% After Q1 Miss and Price-Target Cuts

Overview

• Lockheed Martin fell about 12% for the week after its first-quarter report missed forecasts and several banks lowered their price targets.
• Quarterly results came in below estimates, with earnings of $6.44 per share versus $6.74 expected and revenue of $18.02 billion versus $18.38 billion, and the company said one fewer workweek hurt sales.
• Free cash flow turned negative at $291 million as management pointed to lower margins, swings in working capital, and pressure from fixed‑price contracts.
• New orders lagged, producing a 0.6 book‑to‑bill ratio, which means new bookings covered only 60% of sales and signaled softer near‑term demand than deliveries.
• Executives reaffirmed full‑year EPS guidance of $29.35 to $30.25, and the longer‑term pipeline stayed active with Pentagon demand and export wins such as Peru’s planned purchase of 12 F‑16 Block 70 jets.