General Dynamics stock falls after profit tops expectations but revenue surprisingly declines
Shares of General Dynamics Corp. (gd) fell 1.0% in premarket trading Wednesday, after the aerospace and defense company reported fourth-quarter profit that beat expectation but a surprise decline in revenue, as its aerospace and marine and combat systems business all missed revenue forecasts. Net income fell to $952 million, or $3.39 a share, from $1.00 billion, or $3.49 a share, in the year-ago period. The FactSet consensus for earnings per share was $3.37. Revenue declined 1.8% to $10.29 billion from $10.48 billion, while the FactSet consensus was for rise to $10.67 billion. Operating margin fell to 11.5% from 12.3%. Book-to-bill, or orders divided by revenue, was 1-to-1. The stock has gained 0.7% over the past three months through Tuesday, while the S&P 500 (spx) has lost 4.8%.