Defense contractor Lockheed Martin lifted its annual profit and sales forecasts on Tuesday, but shares slid 5% because the company's F-35 fighter jet program faced payment headwinds stemming from the government contracting process.

Key Takeaways Lockheed Martin missed revenue estimates as aerospace sales tumbled because of contractual and funding issues for its F-35 fighter jet.Still, the company revised its full-year profit outlook higher.

Lockheed Martin's shares dropped after missing sales estimates, but strong backlog and raised earnings guidance show long-term growth potential.