General Dynamics stock was falling on Wednesday following the release of its earnings report for the third quarter of 2018.
Let’s start off with the bad. General Dynamics (NYSE:GD) reported revenue of $9.09 billion in the most recent quarter. This is an increase over its revenue of $7.58 billion from the third quarter of 2017. However, it is bad news for General Dynamics stock by missing Wall Street’s revenue estimate of $9.38 billion for the period.
General Dynamics notes that the a large portion of its revenue increase for the third quarter of the year comes from its acquisition of CSRA. However, the aerospace and defense company notes that it also saw revenue increases in all other segments.
Now onto the good. General Dynamics’ earnings report for the third quarter of 2018 also includes earnings per share of $2.89. This is better than its earnings per share of $2.52 from the third quarter of the previous year. It also comes in above analysts’ earnings per share estimate of $2.76 for the quarter, but couldn’t keep General Dynamics stock from falling today.
General Dynamics also reported net earnings of $851 million for the third quarter of the year. This is better than the company’s net income of $754 million reported during the same period of the year prior.
Operating earnings reported by General Dynamics for the third quarter of 2018 was $1.14 billion. The company’s operating earnings reported during the same time last year was $1.06 billion.
GD stock was down 6% as of Wednesday afternoon and is also down 6% year-to-date.
As of this writing, William White did not hold a position in any of the aforementioned securities.