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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 2023 earnings per share (EPS) of $3.04, which beat the Zacks Consensus Estimate of $2.87 by 5.9%. However, the figure decreased 6.7% from $3.26 per share recorded in the year-ago quarter.
Total Revenues
General Dynamics’ revenues of $10,571 million beat the Zacks Consensus Estimate of $9,936.5 million by 6.4%. The top line also improved 6% from the prior-year reported figure.
General Dynamics Corporation Price, Consensus and EPS Surprise
Aerospace: The segment reported revenues of $2,032 million, down 13.4% year over year. Operating earnings of $268 million declined 14.1% from the prior-year quarter’s $312 million.
Marine Systems: This segment’s revenues rose 8.4% to $3,002 million from the year-ago quarter. Operating earnings of $211 million decreased 11.3% from the year-ago quarter’s reported numbers.
Technologies: The segment’s revenues improved 7.9% year over year to $3,313 million. Operating earnings totaled $315 million, up 10.5% from the $285 million recorded in the prior-year quarter.
Combat Systems: The segment’s revenues of $2,224 million were up 24.4% from the year-ago quarter’s $1,788 million. Operating earnings also improved 10.7% year over year to $300 million.
Operational Highlights
GD’s operating earnings were $1,057 million, down 3.7% from the year-ago quarter’s reported figure of $1,098 million.
Operating costs and expenses increased 7.2% to $9.5 million from the year-ago period.
Interest expenses declined 1.2% year over year to $85 million.
Backlog
General Dynamics recorded a total backlog of $95.56 billion, up 9.1% from the second-quarter 2023’s backlog of $87.63 billion. The funded backlog at the third-quarter end was $74.31 billion.
Our model projected a backlog worth $93.08 billion in the third quarter of 2023.
Financial Condition
As of Oct 1, 2023, General Dynamics’ cash and cash equivalents were $1,352 million compared with $1,242 million as of Dec 31, 2022.
The long-term debt as of Oct 1, 2023 was $9,248 million, up from the 2022-end level of $9,243 million.
As of Oct 1, 2023, GD generated cash from operating activities of $3,514 million, down from the $3,910 million recorded in the year-ago period.
Hexcel Corporation (HXL - Free Report) reported third-quarter 2023 adjusted earnings of 38 cents per share, which missed the Zacks Consensus Estimate of 42 cents by 9.5%. However, the bottom line improved 15.2% from the year-ago earnings of 33 cents per share.
In the third quarter, net sales totaled $420 million, which missed the Zacks Consensus Estimate of $431 million by 2.6%. However, the top line witnessed an improvement of 15% from the year-ago quarter’s $365 million.
Lockheed Martin Corporation (LMT - Free Report) reported third-quarter 2023 adjusted earnings of $6.77 per share, which beat the Zacks Consensus Estimate of $6.66 by 1.7%. However, the bottom line deteriorated 1.5% from the year-ago quarter's recorded figure.
Net sales were $16.88 billion in the reported quarter, which surpassed the Zacks Consensus Estimate of $16.66 billion by 1.3%. The top line rose 1.8% from $16.58 billion reported in the year-ago quarter.
AAR Corp. (AIR - Free Report) reported first-quarter fiscal 2024 adjusted earnings of 78 cents per share, which surpassed the Zacks Consensus Estimate of 73 cents by 6.9%. Earnings surged 27.9% from the year-ago quarter.
In the quarter under review, AAR generated net sales worth $549.7 million. The reported figure surpassed the Zacks Consensus Estimate by 8.7% and increased 23.2% from $446.3 million recorded in the year-ago quarter.
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General Dynamics (GD) Q3 Earnings Beat, Revenues Rise Y/Y
General Dynamics Corporation (GD - Free Report) reported third-quarter 2023 earnings per share (EPS) of $3.04, which beat the Zacks Consensus Estimate of $2.87 by 5.9%. However, the figure decreased 6.7% from $3.26 per share recorded in the year-ago quarter.
Total Revenues
General Dynamics’ revenues of $10,571 million beat the Zacks Consensus Estimate of $9,936.5 million by 6.4%. The top line also improved 6% from the prior-year reported figure.
General Dynamics Corporation Price, Consensus and EPS Surprise
General Dynamics Corporation price-consensus-eps-surprise-chart | General Dynamics Corporation Quote
Segmental Performance
Aerospace: The segment reported revenues of $2,032 million, down 13.4% year over year. Operating earnings of $268 million declined 14.1% from the prior-year quarter’s $312 million.
Marine Systems: This segment’s revenues rose 8.4% to $3,002 million from the year-ago quarter. Operating earnings of $211 million decreased 11.3% from the year-ago quarter’s reported numbers.
Technologies: The segment’s revenues improved 7.9% year over year to $3,313 million. Operating earnings totaled $315 million, up 10.5% from the $285 million recorded in the prior-year quarter.
Combat Systems: The segment’s revenues of $2,224 million were up 24.4% from the year-ago quarter’s $1,788 million. Operating earnings also improved 10.7% year over year to $300 million.
Operational Highlights
GD’s operating earnings were $1,057 million, down 3.7% from the year-ago quarter’s reported figure of $1,098 million.
Operating costs and expenses increased 7.2% to $9.5 million from the year-ago period.
Interest expenses declined 1.2% year over year to $85 million.
Backlog
General Dynamics recorded a total backlog of $95.56 billion, up 9.1% from the second-quarter 2023’s backlog of $87.63 billion. The funded backlog at the third-quarter end was $74.31 billion.
Our model projected a backlog worth $93.08 billion in the third quarter of 2023.
Financial Condition
As of Oct 1, 2023, General Dynamics’ cash and cash equivalents were $1,352 million compared with $1,242 million as of Dec 31, 2022.
The long-term debt as of Oct 1, 2023 was $9,248 million, up from the 2022-end level of $9,243 million.
As of Oct 1, 2023, GD generated cash from operating activities of $3,514 million, down from the $3,910 million recorded 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
Hexcel Corporation (HXL - Free Report) reported third-quarter 2023 adjusted earnings of 38 cents per share, which missed the Zacks Consensus Estimate of 42 cents by 9.5%. However, the bottom line improved 15.2% from the year-ago earnings of 33 cents per share.
In the third quarter, net sales totaled $420 million, which missed the Zacks Consensus Estimate of $431 million by 2.6%. However, the top line witnessed an improvement of 15% from the year-ago quarter’s $365 million.
Lockheed Martin Corporation (LMT - Free Report) reported third-quarter 2023 adjusted earnings of $6.77 per share, which beat the Zacks Consensus Estimate of $6.66 by 1.7%. However, the bottom line deteriorated 1.5% from the year-ago quarter's recorded figure.
Net sales were $16.88 billion in the reported quarter, which surpassed the Zacks Consensus Estimate of $16.66 billion by 1.3%. The top line rose 1.8% from $16.58 billion reported in the year-ago quarter.
AAR Corp. (AIR - Free Report) reported first-quarter fiscal 2024 adjusted earnings of 78 cents per share, which surpassed the Zacks Consensus Estimate of 73 cents by 6.9%. Earnings surged 27.9% from the year-ago quarter.
In the quarter under review, AAR generated net sales worth $549.7 million. The reported figure surpassed the Zacks Consensus Estimate by 8.7% and increased 23.2% from $446.3 million recorded in the year-ago quarter.