General Dynamics Corporation (NYSE:GD) stock was down on Wednesday despite posting an earnings beat for the first quarter of 2018.
General Dynamics Corporation reported earnings per share of $2.65 for the first quarter of the year. This is an increase over its earnings per share of $2.48 from the same time last year. It also beat out Wall Street’s earnings per share estimate of $2.52 for the quarter, but couldn’t save GD stock.
Net earnings reported by General Dynamics Corporation for the first quarter of 2018 was $799 million. The aerospace and defense company reported net earnings of $763 million for the first quarter of 2017.
During the first quarter of the year, General Dynamics Corporation reported operating income of $1.01 billion. This is down slightly from its operating income of $1.05 billion reported in the same period of the year prior.
The blow to GD stock comes from General Dynamics Corporation’s revenue of $7.54 billion for the first quarter of 2018. The company’s revenue from the same quarter of the previous year was $7.44 billion. Analysts were looking for revenue of $7.60 billion from GD for the period.
While General Dynamics Corporation saw its revenue increase in most segments for the first quarter of the year, there was one area that lagged behind others. Aerospace revenue for the quarter was $1.83 billion, which is down 12% from the $2.07 billion reported in the first quarter of 2017. This weak revenue is likely what kept the company from reaching Wall Street’s estimate for the quarter.
GD stock was down 3% as of Wednesday afternoon.
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As of this writing, William White did not hold a position in any of the aforementioned securities.
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