Lockheed Martin stock drops after profit beat expectations but sales falls short

Shares of Lockheed Martin Corp. dropped 2.9% in premarket trading Tuesday, after the aerospace and defense contractor reported first-quarter profit that beat expectations but sales that fell well short, as all four of its business segments missed expectations. Net income fell to $1.73 billion, or $6.44 a share, from $1.84 billion, or $6.56 a share. The FactSet consensus for earnings per share was $6.11. Sales declined 8.0% to $14.96 billion, missing the FactSet consensus of $15.58 billion. Aeronautics sales rose 0.2% to $6.40 billion, below expectations of $6.50 billion; Missiles and Fire Control sales fell 10.8% to $2.45 billion to miss expectations of $2.65 billion; Rotary and Mission Systems sales fell 13.5% to $3.55 billion to miss expectations of $3.79 billion; and Space sales dropped 15.1% to $2.56 billion, below expectations of $2.63 billion. The company affirmed its full-year guidance for EPS of ~$26.70 and for sales of ~$66,000. The stock, which closed at a record last Thursday, has soared 31.5% year to date through Monday, while the S&P 500 has lost 7.9%.

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