Lockheed Shares Drop as Outlook Disappoints

Shares of Lockheed Martin (LMT Quote) slid Tuesday after the defense company offered guidance for this year and next that failed to satisfy Wall Street.

Although Bethesda, Md.-based Lockheed raised its 2008 profit outlook by a dime to a range of $7.55 to $7.70 a share, the altered view still fell short of analysts' expectations for a profit of $7.75, according to Thomson Reuters. The company's view that revenue for the year should be between $41.9 billion and $42.9 billion was near the low end of expectations.

For 2009, Lockheed predicted earnings in a range of $7.65 to $7.90 a share on revenue of $44.25 billion to $45.25 billion. However, Wall Street is forecasting earnings of $8.39 a share on sales of $45.73 billion.

Lockheed's stock was lower by $4.72, or 5.1%, to $88.50.

The forecast was delivered alongside Lockheed's third-quarter results. The company said it earned $782 million, or $1.92 a share, in the quarter, up 2% from a year earlier. Sales fell 5% to $10.6 billion. Analysts were calling for Lockheed to make $1.89 a share on revenue of $10.7 billion.

Electronic systems, space systems, and information systems and global services were strong, but were offset by a loss in revenue from the company's aeronautics business.

Among other defense companies, Raytheon (RTN Quote) was off 2.3%, General Dynamics (GD Quote) was losing 1.8% and Northrop Grumman (NOC Quote) was down 1.6%.