July 22, 2024: Lockheed Martin stock plunged nearly 7% in pre-market trading on Tuesday after the defense giant reported a shocking earnings miss for Q2, raising red flags over escalating costs and project delays.
The company reported earnings per share (EPS) of just $1.46, far below Wall Street’s expectation of $6.54. Revenue also disappointed, coming in at $18.2 billion, compared to the anticipated $18.58 billion.
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The massive earnings shortfall was primarily driven by $1.6 billion in pre-tax charges across several defense programs, which slashed EPS by $5.83. The largest blow came from a $950 million hit tied to a classified Aeronautics project, followed by a $570 million charge related to the Canadian Maritime Helicopter Program and a $95 million loss from the Turkish Utility Helicopter Program.
The dismal quarter has triggered fresh scrutiny over cost management and timing issues within Lockheed’s critical defense operations.