Lockheed Declines as IT Spinoff Profit Boost Trails Forecast
- Defense contractor repurchased fewer shares than expected
- Stock falls by most since Jan. 2014 as transaction completed
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Lockheed Martin Corp. tumbled the most in more than two years after disclosing that a $4.6 billion spinoff of its information-technology division to Leidos Holdings Inc. would provide less of an earnings boost than investors expected.
The world’s largest defense contractor fell 3.7 percent to $256.77 at the close in New York, the largest decline since Jan. 2014. Lockheed was the fifth-worst performer on the S&P 500 Index.