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General Dynamics' (GD) Q3 Earnings Beat, Revenues Rise Y/Y
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General Dynamics Corporation (GD - Free Report) reported third-quarter 2019 earnings from continuing operations of $3.14 per share, which beat the Zacks Consensus Estimate of $3.06 by 2.6%. The bottom line also improved 10.2% from the prior-year quarter’s $2.85 per share.
The company reported GAAP earnings of $3.17 per share compared with the year-ago quarter’s $2.88.
Total Revenues
General Dynamics’ third-quarter revenues of $9,761 million surpassed the Zacks Consensus Estimate of $9,682 million by 0.82%. Further, revenues grew 7.3% from $9,094 million in the year-ago quarter. The year-over-year increase can be attributed to growth in Aerospace, Combat and Marine Systems segments.
Backlog
General Dynamics’ total backlog at the end of third-quarter 2019 was $67.4 billion. Estimated potential contract value, representing management’s estimate of value in contracts and unexercised options, was $35.6 billion. Total estimated contract value, the sum of all backlog components, was $103 billion.
Segmental Performance
Aerospace: The segment reported revenues of $2,495 million, up 22.8% year over year. Operating earnings of $393 million rose 4.5% from the prior-year quarter’s $376 million.
Combat Systems: Segment revenues rose 14.2% from the prior-year quarter to $1,740 million. Moreover, operating earnings were up 9.5% from the year-ago quarter to $264 million.
Information Systems and Technology: The segment reported revenues of $2,071 million, which declined 10.2% year over year. Operating earnings also dropped 7% from the prior-year period to $146 million.
Marine Systems: The segment’s revenues of $2,235 million were up 11.6% from the year-ago quarter’s $2,003 million. Operating earnings also improved 23.7% year over year to $209 million.
Mission Systems: The segment’s revenues of $1,220 million declined 0.8% from the year-ago quarter’s $1,230 million. Operating earnings of $185 million grew 3.4% from the year-ago quarter’s $179 million.
General Dynamics Corporation Price, Consensus and EPS Surprise
Company-wide operating margin was in line with the year-ago quarter’s operating margin of 12.5%.
In the quarter under review, General Dynamics’ operating costs and expenses rose 7.4% from the year-ago period to $8,545 million.
Interest expenses in the reported quarter amounted to $114 million, in line with the year-ago quarter’s number.
Financial Condition
As of Sep 29, 2019, General Dynamics’ cash and cash equivalents were $974 million compared with $963 million on Dec 31, 2018.
Long-term debt as of Sep 29, 2019, was $8,989 million, which massively declined from the 2018-end level of $11,444 million.
In the first nine months of 2019, the company’s cash provided by operating activities was $587 million compared with $1,081 million in the year-ago period.
Lockheed Martin Corp. (LMT - Free Report) reported third-quarter 2019 earnings of $5.66 per share, which surpassed the Zacks Consensus Estimate of $5.03 by 12.5%. The bottom line also improved 10.1% from $5.14 registered in the year-ago quarter.
Textron Inc. (TXT - Free Report) reported third-quarter 2019 earnings from continuing operations of 95 cents per share, which surpassed the Zacks Consensus Estimate of 85 cents by 11.8%. The bottom line increased 55.7% from the year-ago quarter.
Upcoming Defense Releases
Leidos Holdings Inc. (LDOS - Free Report) , a Zacks Rank #3 stock, is set to report third-quarter 2019 results on Oct 29.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
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General Dynamics' (GD) Q3 Earnings Beat, Revenues Rise Y/Y
General Dynamics Corporation (GD - Free Report) reported third-quarter 2019 earnings from continuing operations of $3.14 per share, which beat the Zacks Consensus Estimate of $3.06 by 2.6%. The bottom line also improved 10.2% from the prior-year quarter’s $2.85 per share.
The company reported GAAP earnings of $3.17 per share compared with the year-ago quarter’s $2.88.
Total Revenues
General Dynamics’ third-quarter revenues of $9,761 million surpassed the Zacks Consensus Estimate of $9,682 million by 0.82%. Further, revenues grew 7.3% from $9,094 million in the year-ago quarter. The year-over-year increase can be attributed to growth in Aerospace, Combat and Marine Systems segments.
Backlog
General Dynamics’ total backlog at the end of third-quarter 2019 was $67.4 billion. Estimated potential contract value, representing management’s estimate of value in contracts and unexercised options, was $35.6 billion. Total estimated contract value, the sum of all backlog components, was $103 billion.
Segmental Performance
Aerospace: The segment reported revenues of $2,495 million, up 22.8% year over year. Operating earnings of $393 million rose 4.5% from the prior-year quarter’s $376 million.
Combat Systems: Segment revenues rose 14.2% from the prior-year quarter to $1,740 million. Moreover, operating earnings were up 9.5% from the year-ago quarter to $264 million.
Information Systems and Technology: The segment reported revenues of $2,071 million, which declined 10.2% year over year. Operating earnings also dropped 7% from the prior-year period to $146 million.
Marine Systems: The segment’s revenues of $2,235 million were up 11.6% from the year-ago quarter’s $2,003 million. Operating earnings also improved 23.7% year over year to $209 million.
Mission Systems: The segment’s revenues of $1,220 million declined 0.8% from the year-ago quarter’s $1,230 million. Operating earnings of $185 million grew 3.4% from the year-ago quarter’s $179 million.
General Dynamics Corporation Price, Consensus and EPS Surprise
General Dynamics Corporation price-consensus-eps-surprise-chart | General Dynamics Corporation Quote
Operational Highlights
Company-wide operating margin was in line with the year-ago quarter’s operating margin of 12.5%.
In the quarter under review, General Dynamics’ operating costs and expenses rose 7.4% from the year-ago period to $8,545 million.
Interest expenses in the reported quarter amounted to $114 million, in line with the year-ago quarter’s number.
Financial Condition
As of Sep 29, 2019, General Dynamics’ cash and cash equivalents were $974 million compared with $963 million on Dec 31, 2018.
Long-term debt as of Sep 29, 2019, was $8,989 million, which massively declined from the 2018-end level of $11,444 million.
In the first nine months of 2019, the company’s cash provided by operating activities was $587 million compared with $1,081 million in the year-ago period.
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
Lockheed Martin Corp. (LMT - Free Report) reported third-quarter 2019 earnings of $5.66 per share, which surpassed the Zacks Consensus Estimate of $5.03 by 12.5%. The bottom line also improved 10.1% from $5.14 registered in the year-ago quarter.
Textron Inc. (TXT - Free Report) reported third-quarter 2019 earnings from continuing operations of 95 cents per share, which surpassed the Zacks Consensus Estimate of 85 cents by 11.8%. The bottom line increased 55.7% from the year-ago quarter.
Upcoming Defense Releases
Leidos Holdings Inc. (LDOS - Free Report) , a Zacks Rank #3 stock, is set to report third-quarter 2019 results on Oct 29.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>