General Dynamics Corp. (GD) shares plunged 5.23% in pre-market trading on Wednesday, underperforming the broader market. The defense contractor's stock was likely impacted by a decline in its order backlog and investor caution ahead of the Federal Reserve's interest rate decision later in the day.
In its fourth-quarter earnings report, General Dynamics posted better-than-expected earnings and revenue, but its consolidated book-to-bill ratio, a measure of new orders relative to revenue, fell to 0.9-to-1 for the quarter. The company's backlog of orders stood at $90.6 billion at the end of 2024, up 9.1% from a year earlier but lower than some analysts' expectations.
Meanwhile, Wall Street was on edge ahead of the Fed's policy meeting, where the central bank is widely expected to keep interest rates unchanged. Investors are closely watching for clues on the Fed's future rate path and its assessment of the economy's resilience amid concerns over a potential slowdown.
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.