Aerospace and defense major Lockheed Martin (NYSE:LMT) was down in trading after its FY24 outlook failed to cheer investors. The company guided for net revenues in the range of $68.5 billion to $70 billion compared to consensus estimates of $68.6 billion. The company also projected earnings of between $25.65 and $26.35 per share, while analysts were expecting earnings of $26.46 per share. The lower-than-expected EPS can be attributed to the company’s labor and supply chain challenges.
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The company had stated back in October that its production had been adversely impacted by a supply shortage in processor assemblies, solid-rocket motors, castings, and forgings.
In its fourth quarter, Lockheed Martin reported adjusted earnings of $7.90 per share compared to $7.70 per share in the same quarter last year. This was above analysts’ estimates of $7.29 per share. On the other hand, sales declined by 5.26% year-over-year to $18.9 billion but still beat consensus estimates of $17.9 billion. In addition, the company had a record backlog of $160.6 billion at the end of FY23.
Is LMT a Good Stock to Buy?
Analysts remain sidelined about LMT stock with a Hold consensus rating based on five Holds. LMT stock has gone up by only 3.3% in the past year, and the average LMT price target of $477.40 implies an upside potential of 7.5% at current levels.
