Lockheed Martin (NYSE: LMT) exceeded expectations with its latest earnings report, sending shares up 2% despite opening down nearly 4%. The company’s revenue beat Wall Street estimates, driven by strong performance from its missile and aerospace units. Profitability was also boosted by better-than-expected operating margins from its space division.
The company’s guidance for the full year remained unchanged, providing relief to investors who had been worried about the impact of tariffs and a loss in a key fighter jet contract. Lockheed Martin’s relatively poor 0.8 book-to-bill reflects the lack of momentum from existing programs, but the company’s exposure to Pentagon priorities offers potential for future growth.
As an attractive option for investors seeking a reliable source of income with modest growth prospects, Lockheed Martin boasts a dividend yielding nearly 3%. However, the Motley Fool’s Stock Advisor analyst team did not recommend the stock, citing other options that could produce monster returns. Despite this, investors may consider Lockheed Martin if they’re looking for a stable choice with potential upside.
Source: https://finance.yahoo.com/news/why-lockheed-martin-stock-volatile-173423675.html