General Dynamics Corp. (GD) - Get Report announced strong fourth-quarter results Wednesday, topping analysts top - and bottom-line estimates even as its aerospace division went through a new model transition that could have impacted sales.
However, the company's stock fell 2.9% Wednesday after the company provided weak full year guidance in a post-earnings release call. The company expects to earn between $11.60 and $11.70 per share in 2019, short of Wall Street's consensus $11.98 per share expectations.
Revenue of $38.5 billion is also expected to fall below $39.2 billion estimates.
The Falls Church, Va.-based defense contractor reported fourth-quarter earnings of $3.07 a share, a 20.4% year-over-year increase on an adjusted basis, on revenue of $10.4 billion, a 16.9% jump from a year earlier.
"General Dynamics delivered solid performance in 2018," said Phebe N. Novakovic, chairman and chief executive officer. "Our Aerospace segment successfully managed through a new model transition while achieving good order intake. Our defense businesses had strong operating performance and continued to book significant new business."
Analysts polled by FactSet were expecting the company to report earnings of $2.98 a share on revenue of $10.36 billion.
All five of the company's segments reported revenue growth, including the aerospace division, which would have had a reason for slumping sales as the segment went through an ongoing transition to new aircraft models.