General Dynamics Stock Falls Premarket After Earnings Misses Estimates: Retail Sentiment Takes A Hit

Shares of aerospace and defense firm General Dynamics Corp ($GD) were in focus on Wednesday after the firm reported its third-quarter earnings. Revenue rose 10.4% year-over-year (YoY) to $11.7 billion, compared to a Wall Street estimate of $11.69 billion.

Earnings per share (EPS) came in at $3.35 compared to an estimate of $3.50. Operating margin for the quarter rose by 10 basis points to 10.1%.

CEO Phebe Novakovic said the company continues to see strong growth and steady improvement in operating performance. “Demand across the portfolio also remains strong in the current environment,” Novakovic said.

General Dynamics reported a company-wide backlog of $92.6 billion. Its estimated potential contract value, that includes management's estimate of additional value in unfunded indefinite delivery, indefinite quantity (IDIQ) contracts and unexercised options, stood at $45 billion. Total estimated contract value, which is the sum of all backlog components, stood at $137.6 billion.

The firm’s Aerospace segment witnessed orders worth $2.4 billion while the defense segment saw orders worth $10.5 billion.

General Dynamics highlighted that Gulfstream delivered 28 aircraft in the quarter compared to 27 aircraft delivered in the year-ago quarter.

Meanwhile, retail sentiment on Stocktwits dipped into the ‘bearish’ territory (36/100) from the ‘neutral’ zone a day ago. The move was accompanied by ‘high’ message volumes.

During the quarter, General Dynamics paid $390 million in dividends and used $44 million to repurchase shares. It ended the quarter with $2.1 billion in cash and equivalents on hand.

Shares of General Dynamics have gained over 18% on a year-to-date basis.

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