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General Dynamics (GD) Down 5.3% Since Last Earnings Report: Can It Rebound?
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A month has gone by since the last earnings report for General Dynamics (GD - Free Report) . Shares have lost about 5.3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is General Dynamics due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
General Dynamics Q1 Earnings Beat, Revenues Rise Y/Y
General Dynamics reported first-quarter 2023 earnings per share (EPS) of $2.64, which beat the Zacks Consensus Estimate of $2.56 by 3.1%. The figure also increased 1.1% from $2.61 per share recorded in the year-ago quarter.
Total Revenues
General Dynamics’ revenues of $9,881 million beat the Zacks Consensus Estimate of $9,322 million by 6%. The top line also improved 5.2% from that reported in the prior-year period.
Segmental Performance
Aerospace: The segment reported revenues of $1,892 million, down 0.6% year over year. Operating earnings of $229 million declined 5.8% from the prior-year quarter’s $354 million.
Marine Systems: This segment’s revenues rose 12.9% to $2,992 million from the year-ago quarter. Operating earnings of $211 million came in line with the year-ago quarter’s reported numbers.
Technologies: The segment’s revenues improved 2.5% year over year to $3,241 million. Operating earnings totaled $299 million, up 0.3% from the $298 million recorded in the prior-year quarter.
Combat Systems: The segment’s revenues of $1,756 million were up 4.8% from the year-ago quarter’s $1,675 million. Operating earnings also improved 7.9% year over year to $245 million.
Operational Highlights
GD’s operating earnings were $938 million, up 3.3% from the year-ago quarter’s reported figure of $908 million.
Operating costs and expenses increased 5.4% to $8.9 million from the year-ago period.
Interest expenses declined 7.1% year over year to $91 million.
Backlog
General Dynamics recorded a total backlog of $89.83 billion, down 1.4% from fourth-quarter 2022’s backlog of $91.14 billion. The funded backlog at first-quarter end was $77.12 billion.
Financial Condition
As of Apr 2, 2023, General Dynamics’ cash and cash equivalents were $2,038 million compared with $1,242 million as of Dec 31, 2022.
Long-term debt as of Apr 2, 2023, was $9,245 million, up from the 2022-end level of $9,243 million.
As of Mar 31, 2023, GD generated cash from operating activities of $1,462 million, down from the $1,968 million recorded in the year-ago period.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
The consensus estimate has shifted -7.99% due to these changes.
VGM Scores
Currently, General Dynamics has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, General Dynamics has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.
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General Dynamics (GD) Down 5.3% Since Last Earnings Report: Can It Rebound?
A month has gone by since the last earnings report for General Dynamics (GD - Free Report) . Shares have lost about 5.3% in that time frame, underperforming the S&P 500.
Will the recent negative trend continue leading up to its next earnings release, or is General Dynamics due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers.
General Dynamics Q1 Earnings Beat, Revenues Rise Y/Y
General Dynamics reported first-quarter 2023 earnings per share (EPS) of $2.64, which beat the Zacks Consensus Estimate of $2.56 by 3.1%. The figure also increased 1.1% from $2.61 per share recorded in the year-ago quarter.
Total Revenues
General Dynamics’ revenues of $9,881 million beat the Zacks Consensus Estimate of $9,322 million by 6%. The top line also improved 5.2% from that reported in the prior-year period.
Segmental Performance
Aerospace: The segment reported revenues of $1,892 million, down 0.6% year over year. Operating earnings of $229 million declined 5.8% from the prior-year quarter’s $354 million.
Marine Systems: This segment’s revenues rose 12.9% to $2,992 million from the year-ago quarter. Operating earnings of $211 million came in line with the year-ago quarter’s reported numbers.
Technologies: The segment’s revenues improved 2.5% year over year to $3,241 million. Operating earnings totaled $299 million, up 0.3% from the $298 million recorded in the prior-year quarter.
Combat Systems: The segment’s revenues of $1,756 million were up 4.8% from the year-ago quarter’s $1,675 million. Operating earnings also improved 7.9% year over year to $245 million.
Operational Highlights
GD’s operating earnings were $938 million, up 3.3% from the year-ago quarter’s reported figure of $908 million.
Operating costs and expenses increased 5.4% to $8.9 million from the year-ago period.
Interest expenses declined 7.1% year over year to $91 million.
Backlog
General Dynamics recorded a total backlog of $89.83 billion, down 1.4% from fourth-quarter 2022’s backlog of $91.14 billion. The funded backlog at first-quarter end was $77.12 billion.
Financial Condition
As of Apr 2, 2023, General Dynamics’ cash and cash equivalents were $2,038 million compared with $1,242 million as of Dec 31, 2022.
Long-term debt as of Apr 2, 2023, was $9,245 million, up from the 2022-end level of $9,243 million.
As of Mar 31, 2023, GD generated cash from operating activities of $1,462 million, down from the $1,968 million recorded in the year-ago period.
How Have Estimates Been Moving Since Then?
It turns out, estimates review have trended downward during the past month.
The consensus estimate has shifted -7.99% due to these changes.
VGM Scores
Currently, General Dynamics has a strong Growth Score of A, though it is lagging a lot on the Momentum Score front with an F. However, the stock was allocated a grade of B on the value side, putting it in the second quintile for this investment strategy.
Overall, the stock has an aggregate VGM Score of A. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. Notably, General Dynamics has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.