Lockheed Martin shares fall the most in 10 1/2 months on Tuesday as third-quarter earnings disappoint

Lockheed Martin Corporations (LMT) third-quarter earnings and revenue, reported on Tuesday, fell short of market expectations. The company also cut its full-year 2017 earnings forecast.

Lockheed Martin shares closed lower for the first time in the past four trading sessions on Tuesday. It has been the sharpest daily loss since December 12th 2016. The stock went down 2.36% ($7.58) to $313.15, after touching an intraday low at $310.61, or a price level not seen since October 2nd ($309.27).

In the week ended on October 22nd the shares of the global security and aerospace company added 0.19% to their market value compared to a week ago, which marked a fifth consecutive period of gains.

The stock has pared its advance to 0.92% so far during the current month, following a 1.60% surge in September. The latter has been a third straight month of gains.

For the entire past year, Lockheed Martin shares gained 15.10%. The stock has advanced another 25.29% so far in 2017.

Lockheeds total revenue was reported to have surged 5.4% to $12.7 billion during the third quarter compared to the same period a year earlier. In comparison, analysts on average had expected a larger revenue growth – to $12.83 billion.

At the same time, the companys earnings per share were reported at $3.24 during the latest quarter, again falling short of market consensus ($3.27).

“Our continued focus on operational performance and meeting our delivery commitments has enabled us to increase our financial guidance and post a record backlog that supports long term growth”, Marillyn Hewson, Lockheed Martins Chairman, President and Chief Executive, was quoted as saying in the press release.

“As we look ahead to 2018, we remain focused on delivering for our customers, investing in innovative solutions, and returning value to our shareholders”, Hewson noted.

Meanwhile, Lockheed revised down its full-year earnings forecast to a range of $12.85-$13.15 per share from a range of $12.30-$12.60 per share, as expected in July.

On the other hand, the aerospace companys full-year 2017 net sales forecast was revised up to a range of $50.0-$51.2 billion from a range of $49.8-$51.0 billion, as projected in July.

According to CNN Money, the 21 analysts, offering 12-month forecasts regarding Lockheed Martin’s stock price, have a median target of $321.00, with a high estimate of $350.00 and a low estimate of $265.00. The median estimate is a 2.51% surge compared to the closing price of $313.15 on October 24th.

The same media also reported that 13 out of 24 surveyed investment analysts had rated Lockheed Martin Corporation’s stock as “Hold”, while 10 – as “Buy”.

Daily and Weekly Pivot Levels

With the help of the Camarilla calculation method, today’s levels of importance for the Lockheed Martin stock are presented as follows:

R1 – $313.74
R2 – $314.32
R3 (Range Resistance – Sell) – $314.91
R4 (Long Breakout) – $316.66
R5 (Breakout Target 1) – $318.72
R6 (Breakout Target 2) – $319.59

S1 – $312.56
S2 – $311.98
S3 (Range Support – Buy) – $311.39
S4 (Short Breakout) – $309.64
S5 (Breakout Target 1) – $307.58
S6 (Breakout Target 2) – $306.71

By using the traditional method of calculation, the weekly levels of importance for Lockheed Martin Corporation (LMT) are presented as follows:

Central Pivot Point – $317.90
R1 – $322.77
R2 – $325.55
R3 – $330.42
R4 – $335.30

S1 – $315.12
S2 – $310.25
S3 – $307.47
S4 – $304.70