July 27, 2016 / 11:51 AM / 3 years ago

General Dynamics profit beats; company raises 2016 profit forecast

(Reuters) - General Dynamics Corp (GD.N), which makes Gulfstream jets, tanks and naval ships, reported a better-than-expected quarterly profit, and the company raised its full-year earnings forecast.

General Dynamics said on Wednesday it now expects earnings from continuing operations of $9.70 per share for 2016, up from $9.20 previously.

Analysts on average were expecting 2016 earnings of $9.52 per share, according to Thomson Reuters I/B/E/S.

The Falls Church, Virginia-based company said margins expanded in three of its four businesses in the second quarter ended July 3.

Excluding a $23 million gain on the sale of a business last year, margins expanded by 60 basis points, the company said.

However, revenue fell 2.8 percent to $7.67 billion, led by lower sales in its combat systems and aerospace businesses.

Net income rose to $758 million, or $2.44 per share, from $752 million, or $2.27 per share, a year earlier.

Analysts had expected earnings of $2.31 per share and revenue of $7.87 billion.

Up to Tuesday’s close of $144.51, the company’s stock had risen about 5 percent this year, underperforming the near 7 percent increase in the Dow Jones U.S. Aerospace & Defense index .DJUSAE.

Reporting by Ankit Ajmera in Bengaluru; Editing by Maju Samuel and Sriraj Kalluvila

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