Lockheed Martin Corporation (LMT), the largest U.S. defense contractor, reported disappointing numbers in the third quarter, with EPS missing the Zacks Consensus Estimate and lagging the year-ago quarterly numbers.
In the near-term, the gloom is unlikely to lift given the overhang of defense budget cuts, a receding order backlog, headwinds in margins, execution risk of major programs, cost overruns, higher pension liability and risks regarding retrenchment cost recovery.
We do not expect the situation to improve significantly in the near future, and therefore downgrade Lockheed Martin to Underperform.
LOCKHEED MARTIN (LMT): Free Stock Analysis Report
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