(By Balachander S) General Dynamics Corp. (NYSE:GD) posted a decline in earnings for the first quarter amid a drop in revenue and operating margins. The aerospace and defense company's profit and revenue also missed market expectations.
The Falls Church, Virginia-based company said it continues to see slower-than-expected award activity, primarily relating to its IS&T programs with validated requirements and approved funding.
Earnings were $564 million or $1.57 per share for the first quarter, compared with $618 million or $1.64 per share in the year-ago quarter.
Revenue dipped 2.8 percent to $7.58 billion.
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Analysts, on average, polled by Thomson Reuters expected earnings of $1.69 per share on revenue of $7.91 billion.
Business wise, revenue at Aerospace jumped 20 percent, while Combat Systems, Marine Systems and Information Systems and Technology revenue dropped 2.3 percent, 4.2 percent and 13.3 percent, respectively.
Operating margins shrank to 11.3 percent from 11.9 percent.
Looking ahead for the full year, the company still expects earnings per share in the range of $7.10 to $7.20, while analysts expect $7.32.
GD shares, which have been trading in the 52-week range between $53.95 and $75.93, ended Tuesday's regular trading at $70.06.