Markets
TXT

General Dynamics (GD) Beats on Q3 Earnings, Sales Up Y/Y

General Dynamics CorporationGD reported third-quarter 2018 earnings from continuing operations of $2.89 per share, beating the Zacks Consensus Estimate of $2.74 by 5.5%. Reported earnings were up 14.7% from $2.52 recorded in the year-ago quarter.

Total Revenues

General Dynamics' third-quarter total revenues of $9,094 million missed the Zacks Consensus Estimate of $9,427 million by 3.5%. However, reported revenues increased 20% from $7,580 million in the year-ago quarter. A large portion of growth can be attributed to the acquisition of CSRA Inc. in the reported quarter.

Backlog

The company recorded a total backlog of $69.5 billion, up 4.9% sequentially. Funded backlog at the quarter end was $54.4 billion.

Segment Performance

Aerospace : The segment reported revenues of $2,031 million, up 1.8% year over year. Operating earnings of $376 million decreased 1.3% from the prior-year quarter figure of $381 million.

Combat Systems : Segment revenues rose 1.5% to $1,523 million. Operating earnings were down 2.4% to $241 million in the quarter.

Information Systems and Technology : The segment reported revenues of $2,307 million, which surged 116% year over year. Operating income also surged 55.4% to $157 million.

Marine Systems : The segment's revenues of $2,003 million were up 3.7% from the year-ago figure of $1,931 million. However, operating income dropped 5.6% to $169 million.

Mission Systems : The segment's revenues of $1,230 million were up 13.3% from the year-ago figure of $1,086 million. Operating income was up 17.8 % from the year-ago quarter figure of $152 million.

General Dynamics Corporation Price, Consensus and EPS Surprise

General Dynamics Corporation Price, Consensus and EPS Surprise | General Dynamics Corporation Quote

Operational Highlights

Company-wide operating margin contracted 150 basis points (bps) to 12.5% from the year-ago level of 14%.

In the quarter under review, General Dynamics' operating costs and expenses rose 22.1% to $7,959 million.

Financial Condition

As of Sep 30, 2018, General Dynamics' cash and cash equivalents were $1,010 million compared with $2,983 million as of Dec 31, 2017.

Long-term debt as of Sep 30, 2018 was $11,403 million, which witnessed a massive rise from the 2017-end level of $3,980 million.

As of Sep 30, 2018, the company's cash provided by operating activities were $790 million compared with $872 million in the year-ago period.

Free cash flow from operations at the end of the third quarter was $622 million compared with $752 million in the previous-year quarter.

Zacks Rank

General Dynamics currently carries a Zacks Rank #3 (Hold).You can see the complete list of today's Zacks #1 (Strong Buy) Rank stocks here .

Recent Defense Releases

Textron Inc. TXT reported third-quarter 2018 adjusted earnings from continuing operations of 61 cents per share, which missed the Zacks Consensus Estimate of 76 cents by 19.7%.

AAR Corp. AIR reported first-quarter fiscal 2019 adjusted earnings of 54 cents per share, which surpassed the Zacks Consensus Estimate of 52 cents by 3.9%.

Lockheed Martin Corp. LMT reported third-quarter 2018 earnings of $5.14 per share, beating the Zacks Consensus Estimate of $4.32 by 19%. The bottom line also improved 54.8% from the year-ago quarter's figure of $3.32.

Will You Make a Fortune on the Shift to Electric Cars?

Here's another stock idea to consider. Much like petroleum 150 years ago, lithium power may soon shake the world, creating millionaires and reshaping geo-politics. Soon electric vehicles (EVs) may be cheaper than gas guzzlers. Some are already reaching 265 miles on a single charge.

With battery prices plummeting and charging stations set to multiply, one company stands out as the #1 stock to buy according to Zacks research.

It's not the one you think.

See This Ticker Free >>

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

Lockheed Martin Corporation (LMT): Free Stock Analysis Report

General Dynamics Corporation (GD): Free Stock Analysis Report

AAR Corp. (AIR): Free Stock Analysis Report

Textron Inc. (TXT): Free Stock Analysis Report

To read this article on Zacks.com click here.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

TXTLMTAIRGD

Other Topics

Earnings Stocks

Latest Markets Videos

Zacks

Zacks is the leading investment research firm focusing on stock research, analysis and recommendations. In 1978, our founder discovered the power of earnings estimate revisions to enable profitable investment decisions. Today, that discovery is still the heart of the Zacks Rank. A wealth of resources for individual investors is available at www.zacks.com.

Learn More