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General Dynamics Sees a Big Loss in Q4; Revenue Dips -11.7% (GD)
Posted By Michael Flannelly On January 23, 2013 @ 9:43 am In Dividend Stocks | Comments Disabled
On Wednesday aerospace and defense company General Dynamics Corporation (GD) posted a big fourth quarter loss as defense spending slows.
The Falls Church, Virginia-based company posted a loss of $2.13 billion, or $6.07 per share, in the fourth quarter, compared to a profit of $603 million, or $1.69 per share, earned in the year earlier period.
For the quarter, the company booked a $2 billion goodwill impairment for its Information Systems and Technology sector because of slowed defense spending. The company also booked $867 million in other one-time charges.
Adjusting for these one-time items and charges, General Dynamics reported an profit of $1.39 per share. According to analysts polled by FactSet, Wall Street was expecting GD to earn $1.90 per share.
General Dynamics revenue for the fourth quarter was down -11.7% to $8.08 billion. Wall Street was expecting revenue to be $8.8 billion.
Looking forward, GD is expecting 2013 EPS to come in at $6.60 to $6.70. Analysts are expecting 2013 EPS to be $7.32.
General Dynamics shares were down $2.24, or -3.16%, during morning trading on Wednesday. The stock is down -5.31% over the past year.
The Bottom Line
Shares of General Dynamics (GD) have a 2.89% dividend yield, based on last night’s closing stock price of $70.71. The stock has technical support in the $66-$68 price area. If the shares can firm up, we see overhead resistance around the $72-$74 price levels.
General Dynamics Corporation (GD) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.
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