General Dynamics Slips After 2025 Outlook Fails To Impress Wall Street, Retail Looks Past Weakness

General Dynamics (GD) shares fell 3.5% on Wednesday as the aerospace and defense company forecasted 2025 revenue below Wall Street’s estimate.

According to FinChat data, the company forecasted 2025 revenue of about $50.3 billion, which was short of the average analysts’ expectations of $50.40 billion.

However, the Reston, Virginia-based company’s fourth-quarter net income rose to $1.15 billion, or $4.15 per share, compared with $1.01 billion, or $3.64 per share, last year.

Its quarterly revenue rose 14.3% to $13.34 billion and beat the Street estimate of $12.82 billion.

The company’s aerospace segment earnings jumped 36.4% to $3.74 billion.

General Dynamics said its Gulfstream business jets segment delivered 47 aircraft during the quarter, of which 42 were large-cabin aircraft.

At the end of the year, the total estimated contract value, the sum of all backlog components, rose 9.1% to $144 billion.

The company had received several defense contracts during the quarter, including a $5.6 billion deal to modernize, integrate, and operate the Department of Defense’s Mission Partner Environments, which allows the U.S. military to share classified information with allies.

For 2025, earnings per share are expected to be between $14.75 and $14.85, the company said.

General Dynamics projected aircraft deliveries would rise to 150 this year from 136 in 2024.

Retail sentiment on Stocktwits jumped to ‘extremely bullish’ (82/100) territory from ‘bullish’(59/100) a day ago, while retail chatter soared to ‘extremely high.’

Users were pleased with the earnings report and expressed their disappointment with the stock move.

On Tuesday, peer Lockheed Martin shares also tanked after it forecasted 2025 earnings below estimates.

Over the past year, General Dynamics shares have fallen 4.2%.

Also See: RTX’s Collins Aerospace Gets US Navy Contract With $904M Earnings Potential: Retail Gets More Optimistic

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