General Dynamics (GD) - Get General Dynamics Corporation Report missed analyst targets for first-quarter earnings and revenue as the coronavirus pandemic pushed off deliveries of its popular Gulfstream corporate jet.
The Reston, Va., defense contractor reported net income of $706 million, or $2.43 a share. That's a more than 5% drop from the year-earlier period, when General Dynamics earned $745 million, or $2.56 a share.
General Dynamics earnings also fell short of the estimate of analysts surveyed by Zacks Investment Research, which had pegged first quarter earnings per share at $2.57.
General Dynamics revenue came in at $8.75 billion, a 5.5% decline over the first three months of 2019. Analysts polled by Zacks had pegged the figure at $9.28 billion.
General Dynamics said coronavirus-lockdown driven delays in its deliveries of its Gulfstream business jets hit hard. The delays in deliveries of its business jets accounted for a $549 million drop in revenue for its aerospace unit during the first quarter.
Even so, General Dynamics said its aerospace unit remains on solid financial footing, with the backlog of orders having risen by $1.1 billion over the first quarter of 2019, a 9.1% increase.
At last check General Dynamics shares rose 0.8% to $137.53.