Lockheed Martin's stock plummeted by 6.2% on Tuesday, January 28th, 2025, in the pre-market trading session. The defense giant's steep decline came after it reported disappointing fourth-quarter 2024 earnings and revenue, missing analyst estimates due to losses associated with classified programs.

The company's net earnings for the quarter were $527 million, or $2.22 per share, down significantly from $1.9 billion, or $7.58 per share, in the same period last year. This miss was primarily attributed to $1.7 billion in pre-tax losses related to classified programs, impacting earnings per share by a staggering $5.45.

Lockheed Martin's revenue for the quarter also fell short, coming in at $18.6 billion, slightly below the consensus estimate of $18.9 billion. The company's aeronautics and missiles and fire control segments were particularly impacted by losses on classified contracts.

Adding to investor concerns, Lockheed Martin's profit guidance for fiscal year 2025 missed Wall Street expectations. The company projected earnings per share in the range of $27.00 to $27.30, lower than the consensus estimate of $27.92. This cautious outlook underscores the challenges Lockheed Martin faces, including delays in rolling out a technology upgrade for its flagship F-35 fighter jet program, which contributes around 30% of its revenue.