We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
General Dynamics (GD) Beats on Q3 Earnings, Sales Up Y/Y
Read MoreHide Full Article
General Dynamics Corporation (GD - Free Report) 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
Textron Inc. (TXT - Free Report) 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 - Free Report) 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 - Free Report) 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.
Image: Bigstock
General Dynamics (GD) Beats on Q3 Earnings, Sales Up Y/Y
General Dynamics Corporation (GD - Free Report) 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 - Free Report) 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 - Free Report) 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 - Free Report) 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 >>