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General Dynamics (GD) Q1 Earnings Lag, Revenues Rise Y/Y
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General Dynamics Corporation (GD - Free Report) reported first-quarter 2024 earnings per share (EPS) of $2.88, which missed the Zacks Consensus Estimate of $2.89 by 0.4%. However, the figure increased 9.1% from $2.64 per share recorded in the year-ago quarter.
Total Revenues
General Dynamics’ revenues of $10,731 million in the reported quarter beat the Zacks Consensus Estimate of $10,201 million by 5.2%. The top line also improved 8.6% from the prior-year reported figure.
The year-over-year improvement can be attributed to increased revenues from GD’s Aerospace, Marine Systems and Combat Systems business segments.
General Dynamics Corporation Price, Consensus and EPS Surprise
Aerospace: The segment reported revenues of $2,084 million, up 10.1% year over year. Operating earnings of $255 million improved 11.4% during the same time frame.
Marine Systems: This segment’s revenues rose 11.3% to $3,331 million from the year-ago quarter’s level. Operating earnings of $232 million increased 10% year over year.
Technologies: The segment’s revenues slipped 0.8% year over year to $3,214 million. Operating earnings totaled $295 million, down 1.3% during the same time frame.
Combat Systems: The segment’s revenues of $2,102 million were up 19.7% from the year-ago quarter’s reported actuals. Operating earnings also improved 15.1% year over year to $282 million.
Operational Highlights
GD’s operating earnings totaled $1,036 million, up 10.4% from the year-ago quarter’s $938 million.
Operating costs and expenses increased 8.4% year over year to $9.70 billion. Interest expenses declined 9.9% year over year to $82 million.
Backlog
General Dynamics recorded a total backlog of $93.73 billion, up 0.1% from the fourth-quarter level of $93.63 billion. The funded backlog at the end of the reported quarter was $73.17 billion.
Our model projected a backlog worth $96.34 billion for the first quarter of 2024.
Financial Condition
As of Mar 31, 2024, General Dynamics’ cash and cash equivalents totaled $1,036 million compared with $1,913 million as of Dec 31, 2023.
The long-term debt as of Mar 31, 2024, was $8,752 million, down from the 2023-end level of $8,754 million.
During the first quarter of 2024, GD’s cash outflow from operating activities totaled $278 million, against cash flow from operating activities worth $1,462 million recorded a year ago.
RTX Corporation’s (RTX) first-quarter 2024 adjusted earnings per share (EPS) of $1.34 beat the Zacks Consensus Estimate of $1.23 by 8.9%. The bottom line also improved 9.8% from the year-ago quarter’s level of $1.22.
RTX’s first-quarter net sales were $19,305 million, which surpassed the Zacks Consensus Estimate of $18,412.6 million by 4.8%. The top line also improved 12% from $17,214 million recorded in the first quarter of 2023.
Lockheed Martin Corporation (LMT - Free Report) reported first-quarter 2024 adjusted earnings of $6.33 per share, which beat the Zacks Consensus Estimate of $5.80 by 9.1%. The bottom line, however, declined 1.6% from the year-ago quarter's recorded figure of $6.43.
Its net sales were $17.20 billion, which surpassed the Zacks Consensus Estimate of $16.19 billion by 6.2%. The top line also increased 13.7% from $15.13 billion reported in the year-ago quarter.
Hexcel Corporation (HXL - Free Report) reported first-quarter 2024 adjusted earnings of 44 cents per share, which came in line with the Zacks Consensus Estimate.
In the first quarter, the company’s net sales were $472.3 million, which missed the Zacks Consensus Estimate of $475 million by 0.6%. However, the top line witnessed an improvement of 3.2% from the year-ago quarter’s reported figure of $457.7 million.
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General Dynamics (GD) Q1 Earnings Lag, Revenues Rise Y/Y
General Dynamics Corporation (GD - Free Report) reported first-quarter 2024 earnings per share (EPS) of $2.88, which missed the Zacks Consensus Estimate of $2.89 by 0.4%. However, the figure increased 9.1% from $2.64 per share recorded in the year-ago quarter.
Total Revenues
General Dynamics’ revenues of $10,731 million in the reported quarter beat the Zacks Consensus Estimate of $10,201 million by 5.2%. The top line also improved 8.6% from the prior-year reported figure.
The year-over-year improvement can be attributed to increased revenues from GD’s Aerospace, Marine Systems and Combat Systems business segments.
General Dynamics Corporation Price, Consensus and EPS Surprise
General Dynamics Corporation price-consensus-eps-surprise-chart | General Dynamics Corporation Quote
Segmental Performance
Aerospace: The segment reported revenues of $2,084 million, up 10.1% year over year. Operating earnings of $255 million improved 11.4% during the same time frame.
Marine Systems: This segment’s revenues rose 11.3% to $3,331 million from the year-ago quarter’s level. Operating earnings of $232 million increased 10% year over year.
Technologies: The segment’s revenues slipped 0.8% year over year to $3,214 million. Operating earnings totaled $295 million, down 1.3% during the same time frame.
Combat Systems: The segment’s revenues of $2,102 million were up 19.7% from the year-ago quarter’s reported actuals. Operating earnings also improved 15.1% year over year to $282 million.
Operational Highlights
GD’s operating earnings totaled $1,036 million, up 10.4% from the year-ago quarter’s $938 million.
Operating costs and expenses increased 8.4% year over year to $9.70 billion.
Interest expenses declined 9.9% year over year to $82 million.
Backlog
General Dynamics recorded a total backlog of $93.73 billion, up 0.1% from the fourth-quarter level of $93.63 billion. The funded backlog at the end of the reported quarter was $73.17 billion.
Our model projected a backlog worth $96.34 billion for the first quarter of 2024.
Financial Condition
As of Mar 31, 2024, General Dynamics’ cash and cash equivalents totaled $1,036 million compared with $1,913 million as of Dec 31, 2023.
The long-term debt as of Mar 31, 2024, was $8,752 million, down from the 2023-end level of $8,754 million.
During the first quarter of 2024, GD’s cash outflow from operating activities totaled $278 million, against cash flow from operating activities worth $1,462 million recorded a year ago.
Zacks Rank
General Dynamics currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense Releases
RTX Corporation’s (RTX) first-quarter 2024 adjusted earnings per share (EPS) of $1.34 beat the Zacks Consensus Estimate of $1.23 by 8.9%. The bottom line also improved 9.8% from the year-ago quarter’s level of $1.22.
RTX’s first-quarter net sales were $19,305 million, which surpassed the Zacks Consensus Estimate of $18,412.6 million by 4.8%. The top line also improved 12% from $17,214 million recorded in the first quarter of 2023.
Lockheed Martin Corporation (LMT - Free Report) reported first-quarter 2024 adjusted earnings of $6.33 per share, which beat the Zacks Consensus Estimate of $5.80 by 9.1%. The bottom line, however, declined 1.6% from the year-ago quarter's recorded figure of $6.43.
Its net sales were $17.20 billion, which surpassed the Zacks Consensus Estimate of $16.19 billion by 6.2%. The top line also increased 13.7% from $15.13 billion reported in the year-ago quarter.
Hexcel Corporation (HXL - Free Report) reported first-quarter 2024 adjusted earnings of 44 cents per share, which came in line with the Zacks Consensus Estimate.
In the first quarter, the company’s net sales were $472.3 million, which missed the Zacks Consensus Estimate of $475 million by 0.6%. However, the top line witnessed an improvement of 3.2% from the year-ago quarter’s reported figure of $457.7 million.