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General Dynamics (GD) Q1 Earnings Beat, Revenues Up Y/Y
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General Dynamics Corporation (GD - Free Report) reported first-quarter 2019 earnings from continuing operations of $2.56 per share, which beat the Zacks Consensus Estimate of $2.38 by 7.6%. However, reported earnings declined 3.4% from $2.65 in the year-ago quarter.
Total Revenues
General Dynamics’ first-quarter revenues of $9,261 million surpassed the Zacks Consensus Estimate of $8,890 million by 4.2%. Further, revenues increased 22.9% from $7,535 million in the year-ago quarter. In fact, revenues grew year over year in all of the company’s segments.
Backlog
The company recorded a total backlog of $69.2 billion, up 11.4% year over year. Funded backlog at the quarter-end was $34 billion.
Segment Performance
Aerospace: The segment reported revenues of $2,240 million, up 22.7% year over year. Operating earnings of $328 million declined 5.2% from the prior-year quarter’s $346 million.
Combat Systems: Segment revenues rose 13.6% to $1,636 million. Operating earnings were down 8% to $206 million in the quarter.
Information Systems and Technology: The segment reported revenues of $2,169 million, which surged 90.6% year over year. Operating earnings also surged 54.5% to $156 million.
Marine Systems: The segment’s revenues of $2,058 million were up 1.2% from the year-ago quarter’s $2,034 million. However, operating earnings declined 2.2% to $180 million.
Mission Systems: The segment’s revenues of $1,158 million increased 5.5% from the year-ago quarter’s $1,098 million. Operating earnings increased 1.4% from the year-ago quarter’s $146 million.
Operational Highlights
Company-wide operating margin contracted 250 basis points (bps) to 10.9% from the year-ago quarter’s 13.4%.
In the quarter under review, General Dynamics’ operating costs and expenses rose 26.35% to $8,247 million.
The company repurchased 525,000 of its outstanding shares in the first quarter of 2019. In March, the board of directors increased the quarterly dividend to $1.02 per share. This 9.7% increase marked the company’s 22nd consecutive annual dividend increase.
General Dynamics Corporation Price, Consensus and EPS Surprise
As of Mar 31, 2019, General Dynamics’ cash and cash equivalents were $673 million compared with $963 million as of Dec 31, 2018.
Long-term debt as of Mar 31, 2019 was $11,451 million, which witnessed a massive rise from the 2018-end level of $3,980 million.
As of Mar 31, 2019, the company’s cash used by operating activities were $795 million compared with $496 million used in the year-ago period.
Free cash outflow from operations at the end of the first quarter of 2019 was $976 million compared with $600 million at the end of the first quarter of 2018.
Textron Inc. (TXT - Free Report) reported first-quarter 2019 earnings from continuing operations of 76 cents per share, which surpassed the Zacks Consensus Estimate of 70 cents by 8.6%.
Lockheed Martin Corp. (LMT - Free Report) reported first-quarter 2019 earnings of $5.99 per share, which surpassed the Zacks Consensus Estimate of $4.29 by 39.6%.
An Upcoming Defense Release
Huntington Ingalls Industries, Inc. (HII - Free Report) carries a Zacks Rank #3 and is expected to report first-quarter 2019 results on May 2.
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One out of every six people retires a multimillionaire. Get smart tips you can do today to become one of them in a new Special Report, “7 Things You Can Do Now to Retire a Multimillionaire.”
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General Dynamics (GD) Q1 Earnings Beat, Revenues Up Y/Y
General Dynamics Corporation (GD - Free Report) reported first-quarter 2019 earnings from continuing operations of $2.56 per share, which beat the Zacks Consensus Estimate of $2.38 by 7.6%. However, reported earnings declined 3.4% from $2.65 in the year-ago quarter.
Total Revenues
General Dynamics’ first-quarter revenues of $9,261 million surpassed the Zacks Consensus Estimate of $8,890 million by 4.2%. Further, revenues increased 22.9% from $7,535 million in the year-ago quarter. In fact, revenues grew year over year in all of the company’s segments.
Backlog
The company recorded a total backlog of $69.2 billion, up 11.4% year over year. Funded backlog at the quarter-end was $34 billion.
Segment Performance
Aerospace: The segment reported revenues of $2,240 million, up 22.7% year over year. Operating earnings of $328 million declined 5.2% from the prior-year quarter’s $346 million.
Combat Systems: Segment revenues rose 13.6% to $1,636 million. Operating earnings were down 8% to $206 million in the quarter.
Information Systems and Technology: The segment reported revenues of $2,169 million, which surged 90.6% year over year. Operating earnings also surged 54.5% to $156 million.
Marine Systems: The segment’s revenues of $2,058 million were up 1.2% from the year-ago quarter’s $2,034 million. However, operating earnings declined 2.2% to $180 million.
Mission Systems: The segment’s revenues of $1,158 million increased 5.5% from the year-ago quarter’s $1,098 million. Operating earnings increased 1.4% from the year-ago quarter’s $146 million.
Operational Highlights
Company-wide operating margin contracted 250 basis points (bps) to 10.9% from the year-ago quarter’s 13.4%.
In the quarter under review, General Dynamics’ operating costs and expenses rose 26.35% to $8,247 million.
The company repurchased 525,000 of its outstanding shares in the first quarter of 2019. In March, the board of directors increased the quarterly dividend to $1.02 per share. This 9.7% increase marked the company’s 22nd consecutive annual dividend increase.
General Dynamics Corporation Price, Consensus and EPS Surprise
General Dynamics Corporation Price, Consensus and EPS Surprise | General Dynamics Corporation Quote
Financial Condition
As of Mar 31, 2019, General Dynamics’ cash and cash equivalents were $673 million compared with $963 million as of Dec 31, 2018.
Long-term debt as of Mar 31, 2019 was $11,451 million, which witnessed a massive rise from the 2018-end level of $3,980 million.
As of Mar 31, 2019, the company’s cash used by operating activities were $795 million compared with $496 million used in the year-ago period.
Free cash outflow from operations at the end of the first quarter of 2019 was $976 million compared with $600 million at the end of the first quarter of 2018.
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 first-quarter 2019 earnings from continuing operations of 76 cents per share, which surpassed the Zacks Consensus Estimate of 70 cents by 8.6%.
Lockheed Martin Corp. (LMT - Free Report) reported first-quarter 2019 earnings of $5.99 per share, which surpassed the Zacks Consensus Estimate of $4.29 by 39.6%.
An Upcoming Defense Release
Huntington Ingalls Industries, Inc. (HII - Free Report) carries a Zacks Rank #3 and is expected to report first-quarter 2019 results on May 2.
Will you retire a millionaire?
One out of every six people retires a multimillionaire. Get smart tips you can do today to become one of them in a new Special Report, “7 Things You Can Do Now to Retire a Multimillionaire.”
Click to get it free >>