Why General Dynamics Stock Is Falling Today
General Dynamics (NYSE: GD) topped quarterly expectations, but some of the company's key business units underwhelmed. Investors were disappointed, sending General Dynamics shares down 6% at the open Wednesday and down 4% as of 1:30 p.m. ET.
General Dynamics earned $4.15 per share on sales of $13.3 billion in the quarter, topping Wall Street's $4.05 per share-on-$12.8 billion consensus estimate. But that consensus had reset lower during the quarter, and some of the underlying numbers were less rosy.
The company's Gulfstream arm reported sales of $3.74 billion, up 36% year over year but below the Street's $4.1 billion expectation, and the unit's 15.6% margin was down 80 basis points from a year ago. Free cash flow of $1.81 billion was also below the $2.02 billion consensus estimate.
Source Fool.com
