Lockheed Martin Corp’s (LMT) first-quarter results, reported on Tuesday, exceeded Wall Street estimates, supported by stronger sales in its aeronautics division.
Despite that first-quarter earnings were not influenced, Lockheed said it was “beginning to experience some issues in each of its business areas related to COVID-19.”
Lockheed Martin shares closed lower for a second consecutive trading session in New York on Tuesday. The stock went down 2.55% ($9.77) to $373.44, after touching an intraday low at $371.29, or a price level not seen since April 15th ($367.44).
Shares of Lockheed Martin Corporation have retreated 4.09% so far in 2020 compared with a 15.30% loss for the benchmark index, S&P 500 (SPX).
In 2019, Lockheed Martin’s stock went up 48.71%, thus, it again outperformed the S&P 500, which registered a 28.88% gain.
Total revenue went up 9.2% year-on-year to $15.65 billion during the first quarter, while exceeding a consensus of estimates pointing to $15.08 billion.
However, the company saw slowing production and supply chain activity at its aeronautics unit as a result of the coronavirus pandemic and cut its full-year sales forecast. Lockheed said it now projected full-year 2020 sales within the range of $62.25 billion to $64.00 billion. That is a revision down from a previously expected range of $62.75 billion to $64.25 billion.
Meanwhile, net income went up to $1.72 billion ($6.08 per share) during the quarter ended on March 29th, from $1.70 billion ($5.99 per share) in the same period a year ago. In comparison, analysts on average had expected earnings of $5.80 per share.
The company maintained its full-year 2020 earnings forecast of $23.80 per share.
Analyst stock price forecast and recommendation
According to CNN Money, the 18 analysts, offering 12-month forecasts regarding Lockheed Martin’s stock price, have a median target of $442.50, with a high estimate of $500.00 and a low estimate of $350.00. The median estimate represents an 18.49% upside compared to the closing price of $373.44 on April 21st.
The same media also reported that at least 10 out of 21 surveyed investment analysts had rated Lockheed Martin Corporation’s stock as “Buy”, while 9 – as “Hold”.
TradingPedia.com is a financial media specialized in providing daily news and education covering Forex, equities and commodities. Our academies for traders cover 
