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Shares of Lockheed Martin slip after earnings miss

  • Lockheed Martin reported third-quarter earnings before market open.
  • The defense contractor's stock closed at an all-time high on Oct. 12, according to FactSet.
Lockheed Martin, along with Korea Aerospace Industries is proposing the T-50A for the Air Force's T-X Trainer competition.
Source: Lockheed Martin
Lockheed Martin, along with Korea Aerospace Industries is proposing the T-50A for the Air Force's T-X Trainer competition.

Lockheed Martin reported lower-than-expected third-quarter earnings before market open Tuesday.

Shares of the aerospace and dense contract slipped more than 2 percent in midday trading.

CEO Marillyn Hewson said the company has "a record backlog that supports long term growth." Lockheed Martin raised its expectation for its full-year earnings to a range of $12.85 – $13.15 per share, up from $12.30 – $12.60.

Expectations vs. results

  • EPS: $3.24 per share vs. $3.26 expected, according to Thomson Reuters.
  • Revenue: $12.17 billion vs. $13.81 billion expected, according to Thomson Reuters.

Lockheed Martin said on Aug. 9 it is fielding more missile defense queries amid North Korea tests. The company said customers want to defend themselves against possible incoming missile attacks and are increasingly asking about missile defense systems.

Major defense stocks have surged to record highs this year as President Donald Trump has responded in kind to threats from North Korea. Lockheed Martin's stock closed at an all-time high of $321.15 on Oct. 12, according to FactSet.

Lockheed Martin's stock is up more than 28 percent this year as of Monday's close, according to FactSet.