General Dynamics (NYSE:GD) shares slid on first-quarter results that beat analyst expectations on earnings but missed on revenue, and that also revealed a drop in revenue and operating earnings from the company's Aerospace business segment.
General Dynamics said net income rose 4.7% to $US799mln, or US$2.65 a share, from earnings of US$763mln, or US$2.48 a share, in the first quarter of 2017. Yahoo Finance put the average earnings estimate of analysts at US$2.52 a share.
Revenue at General Dynamics edged up 1.3%, to US$7.54bn from US$7.44bn. Yahoo Finance put the average revenue estimate of analysts at US$7.6bn.
In late morning trading, the stock of General Dynamics was down around 4.5%, at US$212.05 a share.
Phebe Novakovic, General Dynamics chairman and CEO, said the first-quarter results represented "a strong start to 2018 and we remain confident in our outlook."
Nonetheless, General Dynamics revealed that its companywide operating margin narrowed to 13.4% in the first quarter of 2018 from 14.1% in first quarter of 2017.
General Dynamics also reported that revenue from its Aerospace segment fell 12%, to US$1.83bn from US$2.07bn a year earlier, and that operating earnings from the segment dropped 21%, to US$346mln from US$439mln.
In addition, General Dynamics said Gulfstream aircraft deliveries slipped to 26 in the latest first quarter from 30 in the first quarter of 2017.