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Lockheed's Forecast Fails to Impress

Robert Holmes

Shares of Lockheed Martin (LMT Quote - Cramer on LMT - Stock Picks) slipped during Tuesday's session after the defense company offered an outlook for the full year that, while higher than before, didn't satisfy Wall Street.

Although Bethesda, Md.-based Lockheed upped its 2008 profit outlook by a dime to a range of $7.15 to $7.35 a share, the altered view falls short of analysts' expectations for a profit of $7.37 a share, according to Thomson Financial.

Additionally, the company's view that revenue for the year should be between $41.8 billion and $42.8 billion was near the low end of expectations.

Lockheed's stock was lower by $2.97, or 2.8%, to $103.60.

The forecast was delivered alongside Lockheed's first-quarter results. The company said it earned $730 million, or $1.75 a share, in the quarter, up 6% from a year earlier. Sales rose 10% to $9.98 billion. Analysts expected Lockheed to make $1.63 a share on revenue of $9.69 billion.

Electronic systems, space systems, and information systems and global services were strong, offsetting a loss in revenue from the company's aeronautics business. The decrease in aeronautic sales resulted from declines in combat aircraft.

Other defense companies were trading lower in sympathy. Northrop Grumman (NOC Quote - Cramer on NOC - Stock Picks) and Raytheon (RTN Quote - Cramer on RTN - Stock Picks) were down 1.3%, and Alliant Techsystems (ATK Quote - Cramer on ATK - Stock Picks) shed 0.8%. L3 Communications (LLL Quote - Cramer on LLL - Stock Picks) was slipping 0.3%, and General Dynamics (GD Quote - Cramer on GD - Stock Picks) was lower by 0.1%.

Boeing (BA Quote - Cramer on BA - Stock Picks), which will report earnings Wednesday, was higher by 0.3% at $79.33.