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- General Dynamics (GD +1.1%) edges higher after Q3 adjusted earnings beat expectations but revenues missed estimates, and the company cuts its full-year revenue target by $400M.
- In the company's earnings conference call, CEO Phebe Novakovic reportedly said "this quarter's revenues decrease will impact the year, and we now expect revenue to be around $12.6B, or $400M less" than its Q2 update.
- Q3 net earnings increased 5.5% to $860M from $834M in the year-earlier quarter, while revenues rose 1.5% to $9.57B.
- Q3 revenues by segment: Aerospace rose 4.6% Y/Y to $2.07B, coming in just shy of $2.14B analyst consensus estimate; Technologies fell 4% to $3.12B, missing expectations of $3.34B; Combat Systems dropped 3% to $1.75B, slightly below estimates of $1.81B; and Marine Systems gained 9.6% to $2.64B, edging $2.58B consensus.
- General Dynamics and other defense stocks fell sharply yesterday following dismal Q3 results and guidance from Lockheed Martin.
- General Dynamics' shares have jumped 37% YTD and 47% over the past year.