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General Dynamics (GD) Beats on Q1 Earnings, Backlog Drops
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General Dynamics Corporation (GD - Free Report) reported first-quarter 2017 earnings from continuing operations of $2.48 per share, beating the Zacks Consensus Estimate of $2.32 by 6.9%. Reported earnings were also up 19.2% from $2.08 recorded in the year-ago quarter.
Total Revenue
General Dynamics’ first-quarter total revenue of $7,441 million missed the Zacks Consensus Estimate of $7,595 million by 2%. Reported revenues, also dipped 0.5% from $7,476 million in the year-ago quarter.
General Dynamics Corporation Price, Consensus and EPS Surprise
The company recorded a total backlog of $60.4 billion, down 9.4% year over year. Funded backlog at the quarter end was down 6% to $53.3 billion.
Segment Performance
Aerospace: The segment reported revenues of $2,074 million, up 16.5% year over year. Operating earnings of $443 million increased from the prior-year recorded figure of $332 million.
Combat Systems: Segment revenues rose 3.4% to $1,287 million. Operating earnings were up 9.6% to $205 million in the quarter.
Information Systems and Technology: The segment reported revenues of $2,146 million, down 7.8%. Operating income dipped 0.4% to $236 million.
Marine Systems: The segment’s revenues of $1,934 million were down 8.9% from the year-ago figure of $2,122 million. Operating income also declined 12.5% to $161 million.
Operational Highlights
Company-wide operating margin expanded 150 basis points to 13.9% from the year-ago level of 12.4%.
In the quarter under review, General Dynamics’ operating costs and expenses declined 2.2% to $6,406 million.
Financial Condition
As of Apr 2, 2017, General Dynamics’ cash and cash equivalents were $2,168 million, compared with $1,907 million as of Apr 3, 2016.
Long-term debt as of Apr 2, 2017 was $2,988 million, in line with the 2016-end level.
As of Apr 2, 2017, the company’s cash flow from operating activities was around $533 million, compared with $480 million in the year-ago period. Free cash flow from operations at the end of the first quarter was $471 million, compared with $415 million in the previous year.
Recent Peer Releases
Textron Inc. (TXT - Free Report) reported first-quarter 2017 adjusted earnings from continuing operations of 46 cents per share, in line with the Zacks Consensus Estimate. Total revenue in the quarter was $3.09 billion, missing the Zacks Consensus Estimate by 2.6%.
Rockwell Collins Inc. reported financial results for second-quarter fiscal 2017, wherein its adjusted earnings per share of $1.34 surpassed the Zacks Consensus Estimate by 2.3%. Total sales were $1,342 million, which beat the Zacks Consensus Estimate of $1,330 million by 0.9%.
Lockheed Martin Corp. (LMT - Free Report) reported first-quarter 2017 earnings from continuing operations of $3 per share, beating the Zacks Consensus Estimate by 8.7%. However, total revenue of $11.06 billion missed the Zacks Consensus Estimate by 1.8%.
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General Dynamics (GD) Beats on Q1 Earnings, Backlog Drops
General Dynamics Corporation (GD - Free Report) reported first-quarter 2017 earnings from continuing operations of $2.48 per share, beating the Zacks Consensus Estimate of $2.32 by 6.9%. Reported earnings were also up 19.2% from $2.08 recorded in the year-ago quarter.
Total Revenue
General Dynamics’ first-quarter total revenue of $7,441 million missed the Zacks Consensus Estimate of $7,595 million by 2%. Reported revenues, also dipped 0.5% from $7,476 million in the year-ago quarter.
General Dynamics Corporation Price, Consensus and EPS Surprise
General Dynamics Corporation Price, Consensus and EPS Surprise | General Dynamics Corporation Quote
Backlog
The company recorded a total backlog of $60.4 billion, down 9.4% year over year. Funded backlog at the quarter end was down 6% to $53.3 billion.
Segment Performance
Aerospace: The segment reported revenues of $2,074 million, up 16.5% year over year. Operating earnings of $443 million increased from the prior-year recorded figure of $332 million.
Combat Systems: Segment revenues rose 3.4% to $1,287 million. Operating earnings were up 9.6% to $205 million in the quarter.
Information Systems and Technology: The segment reported revenues of $2,146 million, down 7.8%. Operating income dipped 0.4% to $236 million.
Marine Systems: The segment’s revenues of $1,934 million were down 8.9% from the year-ago figure of $2,122 million. Operating income also declined 12.5% to $161 million.
Operational Highlights
Company-wide operating margin expanded 150 basis points to 13.9% from the year-ago level of 12.4%.
In the quarter under review, General Dynamics’ operating costs and expenses declined 2.2% to $6,406 million.
Financial Condition
As of Apr 2, 2017, General Dynamics’ cash and cash equivalents were $2,168 million, compared with $1,907 million as of Apr 3, 2016.
Long-term debt as of Apr 2, 2017 was $2,988 million, in line with the 2016-end level.
As of Apr 2, 2017, the company’s cash flow from operating activities was around $533 million, compared with $480 million in the year-ago period. Free cash flow from operations at the end of the first quarter was $471 million, compared with $415 million in the previous year.
Recent Peer Releases
Textron Inc. (TXT - Free Report) reported first-quarter 2017 adjusted earnings from continuing operations of 46 cents per share, in line with the Zacks Consensus Estimate. Total revenue in the quarter was $3.09 billion, missing the Zacks Consensus Estimate by 2.6%.
Rockwell Collins Inc. reported financial results for second-quarter fiscal 2017, wherein its adjusted earnings per share of $1.34 surpassed the Zacks Consensus Estimate by 2.3%. Total sales were $1,342 million, which beat the Zacks Consensus Estimate of $1,330 million by 0.9%.
Lockheed Martin Corp. (LMT - Free Report) reported first-quarter 2017 earnings from continuing operations of $3 per share, beating the Zacks Consensus Estimate by 8.7%. However, total revenue of $11.06 billion missed the Zacks Consensus Estimate by 1.8%.
Zacks Rank
General Dynamics currently has a Zacks Rank #3 (Hold).You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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