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Investing.com - Lockheed Martin (NYSE:LMT), a $113 billion aerospace and defense giant with a track record of 42 consecutive years of dividend payments, received a reiterated Market Perform rating from Bernstein SocGen Group on Thursday, maintaining its $545.00 price target following the defense contractor’s third-quarter earnings report. According to InvestingPro data, the company currently trades slightly below its Fair Value, with 5 analysts recently revising their earnings estimates upward.
Lockheed Martin reported earnings per share of $6.95 on October 21, exceeding the consensus estimate of $6.36 and Bernstein’s forecast of $6.12. Sales reached $18.6 billion, slightly above the consensus expectation of $18.5 billion, while operating margin came in at 12.3%, outperforming analyst projections of 11.8%. The company maintains a solid financial position with an Altman Z-Score of 3.71, indicating strong financial health.
The company raised its earnings guidance slightly, though Bernstein noted this adjustment primarily reflects tax rate changes rather than operational improvements. Lockheed Martin reduced its free cash flow guidance to $6.6 billion, with management explaining that excess cash would be directed toward pension cost reduction.
Bernstein highlighted Lockheed’s backlog growth, driven by the CH-53K helicopter award and additional contracts in missile and fire control systems and space divisions. The firm also noted the completion of agreements for F-35 fighter jet production Lots 14 and 15.
Based on these developments, Bernstein increased its 2025 revenue forecast for Lockheed Martin from $74.2 billion to $74.7 billion and raised its earnings per share estimate from $21.74 to $22.44, citing improved performance in missile and fire control and space segments, along with a favorable tax rate. Want deeper insights? InvestingPro subscribers get access to over 10 additional exclusive tips and comprehensive financial analysis for Lockheed Martin, including detailed profitability metrics and growth forecasts.
In other recent news, Lockheed Martin reported strong earnings for the third quarter of 2025, with earnings per share reaching $6.95, surpassing the forecast of $6.39. The company’s revenue was $18.6 billion, slightly above expectations, and it has narrowed its revenue outlook upward for the year. Truist Securities maintained its Hold rating and a $500 price target on Lockheed Martin, noting the quarter was free of charges and exceeded market expectations. Meanwhile, NioCorp Developments Ltd. announced a partnership with Lockheed Martin to develop scandium-based defense technology, funded by a $10 million agreement under Title III of the Defense Production Act. This collaboration aims to produce prototype components from aluminum-scandium alloy to enhance fighter aircraft capabilities. The project is being executed with Lockheed Martin’s Skunk Works advanced development programs division. These developments indicate ongoing activity and collaboration in the defense sector.
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