Lockheed Martin misses Q2 expectations

Lockheed Martin missed on sales and earnings this week as sales are sinking and profit margins are headed for their worst performance since 2017.

Lockheed’s major complaints for the second quarter include supply chain impact as well as the timing of customer contracts, but its problems look in fact so much bigger than that. Investors were in a forgiving mood this week, and that was good news for defense company Lockheed Martin because the company’s Q2 2022 earnings report, released Tuesday, was bad with a capital “B”.

Expected to report $6.39 per share in adjusted profits on sales of more than $16 billion, Lockheed missed analysts’ earnings forecast by $0.07 and also missed the sales forecast by $600 million. Lockheed stock closed up a fraction of a percent for the day, and gained even more on Wednesday.

Year over year, Lockheed Martin’s sales declined nearly 10% to just $15.4 million hardly the result that was to expect for a major defense contractor doing business in the middle of a shooting war in Europe.