What Happened?

Shares of security and Aerospace company Lockheed Martin (NYSE:LMT) fell 5.5% in the afternoon session after the company reported third-quarter earnings results, with revenue falling below Wall Street's expectations. Notably, the company was unable to recognize revenue and profit on approximately $400 million of costs incurred on the Lots 18-19 production contract in the quarter. On the other hand, Lockheed Martin blew past analysts' EBITDA expectations, and its full-year revenue guidance came in higher than Wall Street's estimates. Overall, this was a mixed but weaker quarter.

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What The Market Is Telling Us

Lockheed Martin’s shares are not very volatile and have only had a move greater than 5% over the last year. In that context, today’s move indicates the market considers this news meaningful, although it might not be something that would fundamentally change its perception of the business.

Lockheed Martin is up 27% since the beginning of the year, and at $579.96 per share, it is trading close to its 52-week high of $614.61 from October 2024. Investors who bought $1,000 worth of Lockheed Martin’s shares 5 years ago would now be looking at an investment worth $1,551.

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