Lockheed Martin (LMT, Financial), a renowned aerospace company, saw a horrifying start to the day on Wednesday, with shares plunging by more than 5% following the release of its third-quarter earnings. The company topped analysts' expectations on earnings per share (EPS) but fell short on revenue targets.

• Warning! GuruFocus has detected 6 Warning Signs with LMT.

For Q3 2024, Lockheed Martin reported adjusted earnings of $6.84 per share, exceeding the Zacks Consensus Estimate of $6.47 by 5.7%. However, it recorded $17.0 billion in revenue, missing the anticipated $17.4 billion.

The earnings report reflected mixed outcomes across different segments. While Lockheed's Missiles and Fire Control (MFC) segment saw an 8% year-over-year increase in net sales and a 15% rise in operating profits, broader sector challenges impacted overall revenue figures.

Investors reacted negatively to the revenue miss, focusing on the potential implications for future growth amidst a competitive and fluctuating defense spending environment. This reaction underscores the high expectations market participants have for consistent growth across both top and bottom lines.

Looking forward, Lockheed Martin's management remains optimistic about overcoming these challenges, citing ongoing efforts to streamline operations and capitalize on new market opportunities. However, investors are advised to monitor upcoming reports and market conditions closely, as these will provide further insights into the company's ability to achieve sustained growth and profitability.

This article first appeared on GuruFocus.