General Dynamics (NYSE:GD) said that second-quarter earnings from continuing operations dropped to $634 million, down 4.8% from $666 million during the same time last year.
The defense contractor reported that revenues increased just 0.5% to $7.9 billion, compared to $7.89 billion in 2011. That fell short of analysts, who had estimated $7.93 billion in revenue, Reuters noted.
EPS for the second quarter was $1.77, topping the $1.73 that Wall Street expected.
Investors were unimpressed and General Dynamics shares slipped more than 1% in Wednesday morning trading.
The company reduced its earnings guidance for the rest of the year, citing political squabbling over the U.S. defense budget, which had delayed the awarding of new contracts. It now expects profits for the year of between $7 and $7.10 a share.
Yesterday, aerospace and defense manufacturer Lockheed Martin (NYSE:LMT) beat Wall Street estimates for its second-quarter earnings and revenue and increased its earnings outlook for 2012.