Investing.com – Lockheed Martin stock (NYSE:LMT) plunged 11.4% Tuesday as the defense equipment manufacturer lowered its 2021 revenue guidance after supply chain issues kept its third-quarter numbers behind expectations.
The maker of F-35 fighter jets cut its 2021 revenue expectation by 2.5%, to $67 billion, and said next year's revenue could fall to $66 billion.
Net sales declined by around 3%, to $16.02 billion, and came in below expectations. So did the adjusted profit per share of $2.21.
Lockheed expects roughly flat to low-single-digit growth rates in both revenue and segment operating profit over the next few years. This followed, in the words of Chairman, President and CEO James Taiclet, the company’s “reassessment of our five-year business plan given recent external and programmatic events."
Lockheed, however, raised its current-year EPS guidance to $22.45. The board also approved a $5 billion expansion of the company’s share repurchase program and a hike in quarterly dividend rate to $2.80 per share. All this did little to stem the slide in the share price.