Lockheed Martin’s (NYSE:LMT) shares fell as much as 4.6% in the first hour of regular trading on Tuesday after the aerospace and defense contractor reported disappointing sales growth. Sales edged up 1% from a year earlier to $17.

LMT's Q3 results were mixed, with net sales missing consensus but adjusted EPS beating it. The company also raised its FY24 EPS outlook.

Lockheed Martin's 12.5% operating margin came in about 60 basis points ahead of expectations, and free cash flow of $2.1 billion was well ahead of Wall Street's $1.3 billion forecast. Strong space and missile bookings also helped Lockheed Martin produce a book-to-bill ratio of 1.43 in the quarter, setting it up well for future periods.