S&P Places Leidos (LDOS) on Watch for Possible Downgrade (LMT)

RBC Capital Reiterates Outperform Following Lockheed Martin's (LMT) 4Q and Announced Leidos Combination

January 27, 2016 7:19 AM EST

RBC Capital maintained an Outperform rating on Lockheed Martin (NYSE: LMT), and cut the price target to $244.00 (from $250.00), following the company's 4Q earnings report. Lockheed Martin posted 4Q15 EPS of $3.01, ahead of consensus at $2.94. In conjunction with the 4Q results, Lockheed announced... More

Lockheed seals services deal with Leidos, forecasts profit below view

January 26, 2016 8:28 AM EST

By Andrea Shalal

WASHINGTON (Reuters) - Lockheed Martin Corp (NYSE: LMT) on Tuesday announced a $5 billion tax-free deal to combine its information systems and government services business with Leidos Holdings Inc (NYSE: LDOS), and forecast a lower-than-expected profit in 2016.

Lockheed's shares fell as much as 5 percent amid confusion over future prospects for the Pentagon's No. 1 supplier, although the stock recovered after Lockheed officials reassured analysts they still expected rising sales and earnings in coming years.

Leidos shares dropped as much as 9 percent and were off 7.6 percent at $49.56 in... More

Lockheed Martin (LMT) Will Separate, Combine IS&GS Unit with Leidos (LDOS)

January 26, 2016 7:04 AM EST

Lockheed Martin (NYSE: LMT) has entered into a definitive agreement to separate and combine its realigned Information Systems & Global Solutions (IS&GS) business segment with Leidos Holdings, Inc. (NYSE: LDOS) in a tax-efficient Reverse Morris Trust transaction, unlocking $5 billion in estimated enterprise value for Lockheed Martin stockholders.

"This strategic transaction is an important milestone in the portfolio reshaping strategy we announced in July 2015 and allows us to focus on our core business in aerospace and defense," said Lockheed Martin Chairman,... More