Lockheed Martin stock down on earnings, slashed sales guidance

Yahoo Finance Live anchors discuss second-quarter earnings for Lockheed Martin.

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- We're also keeping a close eye on shares of LMT, shares of aerospace defense giant Lockheed Martin. Yes, they are, well, moving down right now by about 2.6% after posting, though, an earnings beat, but missing on revenue for the second quarter. So it was a mixed bag for them. The company lowered full-year sales guidance by almost a billion dollars from $66 billion to $65.3 billion for the remainder of 2022. They have had some significant dealmaking and deliveries take place over the course of these past few weeks, but more long term to some of the spending and some of those larger contracts does that start to pull back, at least.

- Yeah, and one of those contracts that its been working on is the F-35 production deal with the Pentagon. And the company says it's yet to finalize that. So that means it didn't recognize sales from that deal, that pending deal. So that's something that weighed on the numbers, though.

But if you look across its different divisions, it saw pretty much sales and almost everything fall here. Net sales overall were down by more than 9%. Mission and fire control, down 6.7% in terms of sale. Aeronautics, net sales down 12%. Rotary and mission systems, down 5.4%. And space sales, down 11%. So all of those divisions seeing weakness. So they can't just point the finger certainly at that lack of the F-35 deal.

- Yeah, I mean, this was supposed to be a hot time for space. But of course, with an impending perhaps recession here that a lot of companies are bracing for, and even on a government contract side that there is more of an economic focus around where dollars are being put to work, I think for Lockheed Martin, at least right now within the financial outlook that they're providing, it seems like they're a little bit more bearish increasingly about where the prospects have actually seen those orders not just fulfilled from their side, but also this is a company that's still reliant on the supply chain actually working to their advantage to be able to produce the necessary spacecrafts, aircrafts, to be delivered later on. And so any snag in that could also have a headwind impact on this business.

- Yeah. You mentioned the projection here, and it is pretty far below its prior forecast. So the full year earnings per share now going to be $21.55. $26.70 was the prior forecast. So that's a pretty big cut that we're talking about there.