Bethesda, Maryland-based Lockheed Martin Corporation (LMT) is an aerospace and defense company that researches, designs, develops, manufactures, integrates, and sustains technology systems, products, and services. Valued at $120.1 billion by market cap, the company’s businesses span space, telecommunications, electronics, information and services, aeronautics, energy, and systems integration. The world's largest defense contractor is expected to announce its fiscal third-quarter earnings for 2025 before the market opens on Tuesday, Oct. 21.

Ahead of the event, analysts expect LMT to report a profit of $6.33 per share on a diluted basis, down 7.5% from $6.84 per share in the same quarter last year. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports. 

For the full year, analysts expect LMT to report EPS of $27.69, down 2.7% from $28.47 in fiscal 2024. However, its EPS is expected to rise 6.2% year-over-year to $29.40 in fiscal 2026.

LMT stock has significantly underperformed the S&P 500 Index’s ($SPX) 17.9% gains over the past 52 weeks, with shares down 15.6% during this period. Similarly, it notably underperformed the Industrial Select Sector SPDR Fund’s (XLI) 14.1% gains over the same time frame.

LMT's underperformance is due to setbacks in a classified aeronautics program and cost overruns on the Canadian Maritime Helicopter Program. The Space segment also faced declining revenues due to production delays in key programs like Next Gen OPIR satellites and NASA's Orion program.

On Jul. 22, LMT shares closed down by 10.8% after reporting its Q2 results. Its EPS came in at $1.46, down 78.7% year-over-year. The company’s revenue was $18.2 billion, falling short of Wall Street forecasts of $18.6 billion. LMT expects full-year EPS to be $21.70 to $22, and expects revenue in the range of $73.8 billion to $74.8 billion.

Analysts’ consensus opinion on LMT stock is reasonably bullish, with a “Moderate Buy” rating overall. Out of 22 analysts covering the stock, eight advise a “Strong Buy” rating, 13 give a “Hold,” and one recommends a “Strong Sell.” While LMT currently trades above its mean price target of $480.05, the Street-high price target of $550 suggests an upside potential of 7.6%.