Lockheed Martin Stock Dips As BofA Analyst Lowers EPS Estimates, Forecast After Air Force Contract Setback
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Mar 24 2025
0mins
Should l Buy LMT?
Source: Benzinga
Stock Downgrade: Lockheed Martin's shares fell after BofA Securities analyst Ronald J. Epstein downgraded the stock from Buy to Neutral and reduced its price forecast significantly, following the company's loss of a major contract to Boeing for the Next Generation Air Dominance program.
Earnings Concerns: The analyst expressed concerns about Lockheed Martin's earnings quality, the loss of key aircraft programs, and lowered growth expectations, leading to revised EPS estimates for 2025, 2026, and 2027.
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Analyst Views on LMT
Wall Street analysts forecast LMT stock price to fall
12 Analyst Rating
4 Buy
7 Hold
1 Sell
Hold
Current: 610.170
Low
430.00
Averages
535.50
High
605.00
Current: 610.170
Low
430.00
Averages
535.50
High
605.00
About LMT
Lockheed Martin Corporation is a global aerospace and defense company. The Company is engaged in the research, design, development, manufacture, integration and sustainment of advanced technology systems, products and services. Its segments include Aeronautics, Missiles and Fire Control (MFC), Rotary and Mission Systems (RMS) and Space. Aeronautics segment is engaged in the research, design, development, manufacture, integration, sustainment, support and upgrade of advanced military aircraft. MFC segment provides air and missile defense systems, manned and unmanned ground vehicles, energy management solutions, and others. RMS segment designs, manufactures, services and supports various military and commercial helicopters, surface ships, sea and land-based missile defense systems, and others. Its Space segment is engaged in the research and design, development, engineering and production of satellites, space transportation systems, and strategic, advanced strike, and defensive systems.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Lockheed Martin Corporation:
Company Overview: Lockheed Martin Corporation is a global aerospace, defense, and security company known for its advanced technology and innovation in military and civilian sectors.
Recent Developments: The company has been involved in various contracts and partnerships aimed at enhancing national security and advancing aerospace capabilities.
Financial Performance: Lockheed Martin has reported strong financial results, driven by increased demand for defense products and services amid global security challenges.
Future Outlook: The company is focusing on expanding its portfolio in emerging technologies, including artificial intelligence and cybersecurity, to maintain its competitive edge in the industry.
See More
Lockheed Martin Secures ~$478M Contract for Submarine Imaging System
- Significant Contract Value: Lockheed Martin's Rotary and Mission Systems has been awarded a ~$478 million IDIQ contract for engineering and technical support of the Integrated Submarine Imaging System for both new and in-service submarines, highlighting strong demand in the defense sector.
- Potential Value Increase: The contract includes options that could raise its total value to approximately $1.19 billion if fully exercised, indicating the company's long-term strategic positioning and profit potential in the submarine technology support market.
- Project Execution Location: Work will be performed in Manassas, Virginia, with an expected completion date of March 2036, providing the company with a stable revenue stream and project management opportunities over the long term.
- Navy Systems Command Oversight: The contract is awarded by the Naval Sea Systems Command, reflecting Lockheed Martin's core position in naval defense and its close collaboration with government entities.
See More
Pentagon Accelerates Missile System Production Amid Conflict
- Production Capacity Boost: The Pentagon has reached framework agreements with Lockheed Martin and BAE Systems to quadruple the production of seekers for the Terminal High Altitude Area Defense (THAAD) interceptor, significantly enhancing U.S. defense capabilities in response to heavy usage during the early stages of the U.S.-Israeli conflict with Iran.
- Missile System Upgrade: Lockheed Martin will also increase production of the Precision Strike Missile (PrSM), which is set to replace the Army Tactical Missile System (ATACMS), thereby improving the Army's strike capabilities and battlefield flexibility.
- Critical Component Investment: Honeywell Aerospace plans to invest $500 million over several years to surge production of critical components for America’s munitions stockpile, including navigation systems, ensuring a sustained supply of military equipment for the U.S.
- Positive Market Reaction: Following this news, Lockheed Martin shares rose 0.3% in premarket trading, while Honeywell shares gained 1.39%, indicating market optimism regarding defense spending and potential long-term growth for related companies.
See More
Palantir Joins $185 Billion U.S. Defense Antimissile Project
- Project Involvement: Palantir Technologies has joined a consortium developing software for the U.S. Department of Defense's $185 billion Golden Dome antimissile project, aimed at intercepting ballistic, cruise, and hypersonic missiles, highlighting the company's strategic positioning in the defense sector.
- Software Testing Schedule: The software is scheduled for testing this summer, with Palantir collaborating with defense technology firm Anduril Industries, indicating its crucial role in high-tech defense solutions and the potential for substantial future contracts.
- Revenue Contribution: Palantir's government segment is expected to account for 54% of total sales of $4.5 billion in 2025, demonstrating that strong performance in government contracts will continue to drive overall revenue growth for the company.
- Market Reaction: Following the announcement, Palantir shares rose approximately 2% in early Wednesday trading, reflecting investor optimism regarding its involvement in a significant defense project, which may further enhance the company's image in the capital markets.
See More
U.S.-Iran Negotiations Progress and Meta Verdict
- U.S.-Iran Negotiations: President Trump announced that the U.S. and Iran are currently in negotiations, having sent a 15-point peace plan to Tehran, which has lifted investor sentiment and pushed U.S. stock futures higher despite ongoing war-related uncertainties.
- Meta Verdict Impact: A New Mexico jury found Meta liable for $375 million in damages for failing to protect children from online predators, a ruling that could pressure Meta's financials, with the company stating it will appeal the decision.
- OpenAI Strategic Shift: OpenAI is shutting down its short-form video app Sora, which achieved one million downloads within five days of launch, reflecting the company's cost-cutting measures as it prepares for a potential IPO, while the CFO revealed plans to raise $10 billion in new funding.
- Government Shutdown Agreement Near: Senate Republicans and the White House are close to a deal to end the partial government shutdown, which could stabilize market sentiment, particularly regarding funding for the Department of Homeland Security, although Democrats have yet to express approval.
See More
Lockheed Martin to Quadruple Precision Strike Missile Production
- Production Increase: Lockheed Martin announced a quadrupling of Precision Strike Missile (PrSM) production following a framework agreement with the U.S. Department of Defense, aimed at meeting the increasing military demand.
- Contract Background: This increase builds on a $4.94 billion contract awarded in March 2025 for the production of additional Precision Strike Missiles, indicating a strong order flow for the company in the defense sector.
- Market Reaction: Lockheed Martin's shares rose nearly 1% in Wednesday's pre-market trading, reflecting a positive market response to the production increase, although retail sentiment on Stocktwits remained bearish at the time of writing.
- Strategic Implications: With the U.S. Central Command confirming the first use of long-range Precision Strike Missiles in the ongoing Iran war, this production boost not only enhances the company's manufacturing capacity but may also strengthen its competitive position in the global defense market.
See More
Lockheed Martin Corporation:
Company Overview: Lockheed Martin Corporation is a global aerospace, defense, and security company known for its advanced technology and innovation in military and civilian sectors.
Recent Developments: The company has been involved in various contracts and partnerships aimed at enhancing national security and advancing aerospace capabilities.
Financial Performance: Lockheed Martin has reported strong financial results, driven by increased demand for defense products and services amid global security challenges.
Future Outlook: The company is focusing on expanding its portfolio in emerging technologies, including artificial intelligence and cybersecurity, to maintain its competitive edge in the industry.
See More
Lockheed Martin Secures ~$478M Contract for Submarine Imaging System
- Significant Contract Value: Lockheed Martin's Rotary and Mission Systems has been awarded a ~$478 million IDIQ contract for engineering and technical support of the Integrated Submarine Imaging System for both new and in-service submarines, highlighting strong demand in the defense sector.
- Potential Value Increase: The contract includes options that could raise its total value to approximately $1.19 billion if fully exercised, indicating the company's long-term strategic positioning and profit potential in the submarine technology support market.
- Project Execution Location: Work will be performed in Manassas, Virginia, with an expected completion date of March 2036, providing the company with a stable revenue stream and project management opportunities over the long term.
- Navy Systems Command Oversight: The contract is awarded by the Naval Sea Systems Command, reflecting Lockheed Martin's core position in naval defense and its close collaboration with government entities.
See More
Pentagon Accelerates Missile System Production Amid Conflict
- Production Capacity Boost: The Pentagon has reached framework agreements with Lockheed Martin and BAE Systems to quadruple the production of seekers for the Terminal High Altitude Area Defense (THAAD) interceptor, significantly enhancing U.S. defense capabilities in response to heavy usage during the early stages of the U.S.-Israeli conflict with Iran.
- Missile System Upgrade: Lockheed Martin will also increase production of the Precision Strike Missile (PrSM), which is set to replace the Army Tactical Missile System (ATACMS), thereby improving the Army's strike capabilities and battlefield flexibility.
- Critical Component Investment: Honeywell Aerospace plans to invest $500 million over several years to surge production of critical components for America’s munitions stockpile, including navigation systems, ensuring a sustained supply of military equipment for the U.S.
- Positive Market Reaction: Following this news, Lockheed Martin shares rose 0.3% in premarket trading, while Honeywell shares gained 1.39%, indicating market optimism regarding defense spending and potential long-term growth for related companies.
See More
Palantir Joins $185 Billion U.S. Defense Antimissile Project
- Project Involvement: Palantir Technologies has joined a consortium developing software for the U.S. Department of Defense's $185 billion Golden Dome antimissile project, aimed at intercepting ballistic, cruise, and hypersonic missiles, highlighting the company's strategic positioning in the defense sector.
- Software Testing Schedule: The software is scheduled for testing this summer, with Palantir collaborating with defense technology firm Anduril Industries, indicating its crucial role in high-tech defense solutions and the potential for substantial future contracts.
- Revenue Contribution: Palantir's government segment is expected to account for 54% of total sales of $4.5 billion in 2025, demonstrating that strong performance in government contracts will continue to drive overall revenue growth for the company.
- Market Reaction: Following the announcement, Palantir shares rose approximately 2% in early Wednesday trading, reflecting investor optimism regarding its involvement in a significant defense project, which may further enhance the company's image in the capital markets.
See More
U.S.-Iran Negotiations Progress and Meta Verdict
- U.S.-Iran Negotiations: President Trump announced that the U.S. and Iran are currently in negotiations, having sent a 15-point peace plan to Tehran, which has lifted investor sentiment and pushed U.S. stock futures higher despite ongoing war-related uncertainties.
- Meta Verdict Impact: A New Mexico jury found Meta liable for $375 million in damages for failing to protect children from online predators, a ruling that could pressure Meta's financials, with the company stating it will appeal the decision.
- OpenAI Strategic Shift: OpenAI is shutting down its short-form video app Sora, which achieved one million downloads within five days of launch, reflecting the company's cost-cutting measures as it prepares for a potential IPO, while the CFO revealed plans to raise $10 billion in new funding.
- Government Shutdown Agreement Near: Senate Republicans and the White House are close to a deal to end the partial government shutdown, which could stabilize market sentiment, particularly regarding funding for the Department of Homeland Security, although Democrats have yet to express approval.
See More
Lockheed Martin to Quadruple Precision Strike Missile Production
- Production Increase: Lockheed Martin announced a quadrupling of Precision Strike Missile (PrSM) production following a framework agreement with the U.S. Department of Defense, aimed at meeting the increasing military demand.
- Contract Background: This increase builds on a $4.94 billion contract awarded in March 2025 for the production of additional Precision Strike Missiles, indicating a strong order flow for the company in the defense sector.
- Market Reaction: Lockheed Martin's shares rose nearly 1% in Wednesday's pre-market trading, reflecting a positive market response to the production increase, although retail sentiment on Stocktwits remained bearish at the time of writing.
- Strategic Implications: With the U.S. Central Command confirming the first use of long-range Precision Strike Missiles in the ongoing Iran war, this production boost not only enhances the company's manufacturing capacity but may also strengthen its competitive position in the global defense market.
See More
