Lockheed Shares Falling Over 2% On Martin-Leidos Deal

Shares of Lockheed Martin Corporation LMT have been down over 2 percent in Tuesday's trading session following the announcement that the company will be separating its global solutions and information systems unit and merging it with Leidos Holdings Inc SAI.

At the time of this publication, Lockheed Martin's stock is trading lower by 1.86 percent at $207.09.

The Separation And Merger

"The combination of our proven IT and technical services businesses with Leidos will create a new leader in the government IT sector [...] greater scale and improved efficiency," stated Lockheed Martin Chairman, President and CEO Marillyn Hewson.

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Lockheed Martin is expected to receive a one-time payment of $1.8 billion from the deal and own a 50.5 percent equity stake in the energy company Leidos valued at 3.2 billion.

On Tuesday, the Bethesda, Maryland-based company posted its Q415 earnings of $3.01 per share, up from its previous earnings of $2.82 per share for the year-prior quarter. The company's net earnings were $3.6 billion in 2015, or $11.46 per share, compared to $3.6 billion in 2014.

Lockheed Martin's revenues increased to $12.92 billion from $12.53 billion year-over-year. The company's revenues in 2015 were $46.1 billion, compared to $45.6 billion in 2014.