General Dynamics downgrades revenue outlook by Reuters

Reuters. File photo: A general dynamic sign is shown at the International Association of Chiefs of Police Conference in San Diego, California, USA, October 17, 2016. REUTERS / Mike Blake / File photo

Written by Sanjana Shivdas and Mike Stone

(Reuters) – Defense contractor General Dynamics Corp (NYSE 🙂 rose 3% in third-quarter profits on Wednesday, building the U.S. Navy’s ships and its aerospace division, which makes Gulfstream commercial jets, but boosted by higher sales at the unit. Trimmed its annual revenue target by 400 million.

“This quarterly revenue decline will have an impact year on year, and we now expect revenue to be approximately $ 12.6 billion or $ 400 million less than our second-quarter update,” Faby Novakovic, chief executive of General Dynamics, said in a post-earning conference call.

Revenue rose 1.5% to $ 9.57 billion in the quarter, but missed an average analyst estimate of $ 9.85 billion, according to refinitiv data.

Commercial aviation has risen from the bottom of the epidemic because the easing of travel bans and the temptation of private flights fills the order book of new corporate aircraft.

The results followed yesterday’s arms manufacturer’s 11% stock drop Lockheed Martin After the corporation (NYSE 🙂 cut its full-year revenue targets, it cites supply-chain issues and figures from Raytheon Technologies (NYSE :), which makes a mix of weapons and commercial aerospace components and which has increased its forecast for the full year for commercial aircraft. Consistent gains on encouraging signs in the travel space.

Sales of General Dynamics ’marine systems unit, which builds nuclear-powered submarines and surface ships for the U.S. Navy, rose 9.6% to $ 2.64 billion, while space sales rose 4.6% to $ 2.07 billion.

The company delivered 32 vs. 31 Gulfstream a year ago, but indicates strong order activity for its business jets.

General Dynamics announced two new jets earlier this month, competing with the larger Gulfstream G600 Bombardier (OTC:) Inc.’s Global 7500 and Dassault Aviation SA’s 10X.

Net earnings rose $ 860 million, or 3.07 per share, to the average analyst estimate rate of $ 2.98 for the quarter ended Oct. 3, from $ 834 million or $ 2.90 per share, up from a year earlier.

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