Shares of Lockheed Martin (LMT, Financial) fell by 8.54% today, with the price dropping to $460.70. This decline followed the release of its fourth-quarter results, which did not meet Wall Street expectations for both revenue and earnings. Additionally, the company's full-year earnings per share (EPS) guidance was significantly below forecasts. A pivotal element in the EPS shortfall was a $1.3 billion loss reported in Lockheed Martin's Missiles and Fire Control (MFC) business segment.
Lockheed Martin (LMT, Financial) currently holds a market capitalization of $109.20 billion, with a price-earnings (P/E) ratio of 16.68. The company's financial health indicates strong fundamentals with an Altman Z-score of 3.81, reflecting substantial financial strength. Moreover, the Beneish M-Score of -2.49 suggests it is unlikely that the company is engaging in earnings manipulation.
The GF Value of Lockheed Martin indicates a status of being "Modestly Undervalued" with a GF Value estimate of $530.67. Investors can explore more on this through the GF Value page. Despite facing recent setbacks, Lockheed Martin's PS Ratio, currently at 1.59, is close to its one-year low, presenting a potential buying opportunity.
The company displays robust growth metrics, with revenue growth rates of 11% for the past year and a strong track record of dividend growth, averaging 8.2% over the past five years. However, profitability challenges are evident, with declining gross and operating margins over recent years, indicating potential areas for operational improvement.
Lockheed Martin’s forward-looking metrics, such as a forward P/E ratio of 16.48, suggest that there may be expectations of earnings growth. Investors should monitor upcoming earnings releases and strategic initiatives aimed at improving profitability and regaining investor confidence.
