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General Dynamics (GD) Tops Q4 Earnings, Revenues up Y/Y

General Dynamics CorporationGD reported fourth-quarter 2016 earnings from continuing operations of $2.62 per share, beating the Zacks Consensus Estimate of $2.54 by 3.2%. Reported earnings were also up 9.2% from $2.40 recorded in the year-ago quarter.

Full-year earnings from continuing operations came in at $9.87 per share, surpassing the Zacks Consensus Estimate of $9.77 and improving 8.7% year over year.

General Dynamics Corporation Price, Consensus and EPS Surprise

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

Total Revenue

General Dynamics' fourth-quarter total revenue of $8,233 million missed the Zacks Consensus Estimate of $8,258 million by 0.3%. Reported revenues, however, increased slightly from $8,229 million in the year-ago quarter.

Full-year revenues were also down a marginal 0.4% to $31,353 million. Moreover, the reported figure missed the Zacks Consensus Estimate of $31,370 million.

Backlog

The company recorded a total backlog of $59.8 billion, down 17.4% year over year. Funded backlog at the quarter end was down 4.7% to $49.4 billion.

Segment Performance

Aerospace: The segment reported fourth-quarter 2016 revenues of $2,224 million, up 3.8% year over year. Operating earnings of $436 million increased from $410 million.

Combat Systems: Segment revenues improved 10.5% to $1,684 million. Operating earnings were up 10.7% to $259 million in the quarter.

Information Systems and Technology: The segment reported revenues of $2,284 million, up 5.7%. Operating income improved 6.1% to $244 million.

Marine Systems: The segment's revenues of $2,041 million were up 3% from the year-ago figure of $1,982 million. Operating income also increased 8.1% to $186 million.

Operational Highlights

Company-wide operating margin expanded 30 basis points to 13.6% from the year-ago level of 13.3%.

In the quarter under review, General Dynamics' operating costs and expenses declined 5.1% to $7,116 million.

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Financial Condition

As of Dec 31, 2016, General Dynamics' cash and cash equivalents were $2,334 million, compared with $2,785 million as of Dec 31, 2015.

Long-term debt as of Dec 31, 2016 was $2,988 million, higher than the 2015-end level of $2,898 million.

As of Dec 31, 2016, the company's cash flow from operating activities was around $2,198 million, compared with $2,607 million in the year-ago period. Free cash flow from operations in 2016 was $1,806 million, compared with $2,038 million in the previous year.

Other Aerospace & Defense Releases

Rockwell Collins Inc.'s COL adjusted earnings per share of $1.20 surpassed the Zacks Consensus Estimate of $1.15 by 4.3%. Reported earnings, however, slipped 0.8% from $1.21 per share earned a year ago.

Pentagon's prime contractor, Lockheed Martin Corp. LMT reported fourth-quarter 2016 earnings from continuing operations of $3.25 per share, surpassing the Zacks Consensus Estimate of $3.04 by 6.9%. Earnings also increased 23.6% from the year-ago level, courtesy of strong revenue and operating margin growth.

Textron Inc. TXT reported fourth-quarter 2016 adjusted earnings from continuing operations of 80 cents per share, missing the Zacks Consensus Estimate of 87 cents by 8%.

Zacks Rank

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

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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.

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