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General Dynamics (GD) Tops on Q1 Earnings, Revenues Lag
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General Dynamics Corporation (GD - Free Report) reported first-quarter 2018 earnings from continuing operations of $2.65 per share, beating the Zacks Consensus Estimate of $2.47 by 7.3%. Reported earnings were up 6.9% from $2.48 recorded in the year-ago quarter.
Total Revenues
In the quarter, General Dynamics’ total revenues of $7,535 million missed the Zacks Consensus Estimate of $7,543 million by 0.1%.
However, reported revenues were up 1.3% from $7,441 million in the year-ago quarter. The year-over-year increase in total revenues was primarily due to increased contribution from all reportable segments except Aerospace.
Aerospace: The segment generated revenues of $1,825 million, down 12.0% year over year. Operating earnings of $346 million were down 21.2% from the prior-year quarter’s figure of $439 million.
Combat Systems: The segment’s revenues rose 11.9% to $1,440 million. Operating earnings were up 9.3% to $224 million in the quarter.
Information Systems and Technology: The segment generated revenues of $2,236 million, up 4.2% from a year ago. Operating income rose 4.7% from the year-ago quarter to $247 million.
Marine Systems: The segment’s revenues of $2,034 million were up 5.2% from the year-ago figure of $1,934 million. Operating income improved 14.3% from the prior-year quarter to $184 million.
Operational Highlights
The company recorded a total backlog of $62.1 billion. Including the value in unfunded indefinite delivery, indefinite quantity contracts and unexercised options, at the end of first-quarter 2018 were $87.6 billion.
Operating costs and expenses in the reported quarter were $6,527 million, up 2.1% from the year-ago quarter.
Operating income at the end of the quarter was $1,008 million compared with $1,046 million in the year-ago quarter.
Financial Condition
As of Apr 1, 2018, General Dynamics’ cash and cash equivalents were $4,332 million, compared with $2,983 million as of Dec 31, 2017.
Long-term debt as of Apr 1, 2018 was $3,981 million, up from the 2017-end level of $3,980 million.
The company’s cash flow (used)/provided from operating activities was ($496) million in the first quarter of 2018, compared with $533 million in the first quarter of 2017.
Textron Inc.’s (TXT - Free Report) first-quarter 2018 earnings from continuing operations of 72 cents per share beat the Zacks Consensus Estimate of 46 cents by 56.5%.
Lockheed Martin Corp. (LMT - Free Report) reported first-quarter 2018 earnings from continuing operations of $4.02 per share, surpassing the Zacks Consensus Estimate of $3.35 by 20%.
The Boeing Company (BA - Free Report) reported first-quarter 2018 earnings from continuing operations of $3.64 per share, surpassing the Zacks Consensus Estimate of $2.59 by 40.5%.
Investor Alert: Breakthroughs Pending
A medical advance is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating substantial revenue, and even more wondrous products are in the pipeline.
Cures for a variety of deadly diseases are in sight, and so are big potential profits for early investors. Zacks names 5 stocks to buy now.
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General Dynamics (GD) Tops on Q1 Earnings, Revenues Lag
General Dynamics Corporation (GD - Free Report) reported first-quarter 2018 earnings from continuing operations of $2.65 per share, beating the Zacks Consensus Estimate of $2.47 by 7.3%. Reported earnings were up 6.9% from $2.48 recorded in the year-ago quarter.
Total Revenues
In the quarter, General Dynamics’ total revenues of $7,535 million missed the Zacks Consensus Estimate of $7,543 million by 0.1%.
However, reported revenues were up 1.3% from $7,441 million in the year-ago quarter. The year-over-year increase in total revenues was primarily due to increased contribution from all reportable segments except Aerospace.
Price, Consensus and EPS Surprise
Price, Consensus and EPS Surprise | Quote
Segment Performance
Aerospace: The segment generated revenues of $1,825 million, down 12.0% year over year. Operating earnings of $346 million were down 21.2% from the prior-year quarter’s figure of $439 million.
Combat Systems: The segment’s revenues rose 11.9% to $1,440 million. Operating earnings were up 9.3% to $224 million in the quarter.
Information Systems and Technology: The segment generated revenues of $2,236 million, up 4.2% from a year ago. Operating income rose 4.7% from the year-ago quarter to $247 million.
Marine Systems: The segment’s revenues of $2,034 million were up 5.2% from the year-ago figure of $1,934 million. Operating income improved 14.3% from the prior-year quarter to $184 million.
Operational Highlights
The company recorded a total backlog of $62.1 billion. Including the value in unfunded indefinite delivery, indefinite quantity contracts and unexercised options, at the end of first-quarter 2018 were $87.6 billion.
Operating costs and expenses in the reported quarter were $6,527 million, up 2.1% from the year-ago quarter.
Operating income at the end of the quarter was $1,008 million compared with $1,046 million in the year-ago quarter.
Financial Condition
As of Apr 1, 2018, General Dynamics’ cash and cash equivalents were $4,332 million, compared with $2,983 million as of Dec 31, 2017.
Long-term debt as of Apr 1, 2018 was $3,981 million, up from the 2017-end level of $3,980 million.
The company’s cash flow (used)/provided from operating activities was ($496) million in the first quarter of 2018, compared with $533 million in the first quarter of 2017.
Zacks Rank
General Dynamics carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Peer Releases
Textron Inc.’s (TXT - Free Report) first-quarter 2018 earnings from continuing operations of 72 cents per share beat the Zacks Consensus Estimate of 46 cents by 56.5%.
Lockheed Martin Corp. (LMT - Free Report) reported first-quarter 2018 earnings from continuing operations of $4.02 per share, surpassing the Zacks Consensus Estimate of $3.35 by 20%.
The Boeing Company (BA - Free Report) reported first-quarter 2018 earnings from continuing operations of $3.64 per share, surpassing the Zacks Consensus Estimate of $2.59 by 40.5%.
Investor Alert: Breakthroughs Pending
A medical advance is now at the flashpoint between theory and realization. Billions of dollars in research have poured into it. Companies are already generating substantial revenue, and even more wondrous products are in the pipeline.
Cures for a variety of deadly diseases are in sight, and so are big potential profits for early investors. Zacks names 5 stocks to buy now.
Click here to see them >>