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General Dynamics (GD) Beats Q3 Earnings, Revenues Dip Y/Y
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General Dynamics Corporation (GD - Free Report) reported third-quarter 2017 earnings from continuing operations of $2.52 per share, beating the Zacks Consensus Estimate of $2.43 by 3.7%. Reported earnings were up 6.8% from $2.36 recorded in the year-ago quarter.
Total Revenues
General Dynamics’ third-quarter total revenues of $7,580 million missed the Zacks Consensus Estimate of $7,892 million by 4%. Reported revenues also dipped 1% from $7,657 million in the year-ago quarter.
General Dynamics Corporation Price, Consensus and EPS Surprise
The company recorded a total backlog of $63.9 billion, down a mere 0.2% year over year. Funded backlog at the quarter end was down 1% to $52.7 billion.
Segment Performance
Aerospace: The segment reported revenues of $1,995 million, up 3.6% year over year. Operating earnings of $385 million increased 2.1% from the prior-year recorded figure of $377 million.
Combat Systems: Segment revenues rose 13% to $1,500 million. Operating earnings were up 18.2% to $247 million in the quarter.
Information Systems and Technology: The segment reported revenues of $2,154 million, down 7.6%. Operating income rose 5.9% to $253 million.
Marine Systems: The segment’s revenues of $1,931 million were down 6.9% from the year-ago figure of $2, 075 million. Operating income also dropped 9.1% to $179 million.
Operational Highlights
Company-wide operating margin expanded 60 basis points (bps) to 13.9% from the year-ago level of 13.3%.
In the quarter under review, General Dynamics’ operating costs and expenses declined 1.7% to $6,528 million.
Financial Condition
As of Oct 1, 2017, General Dynamics’ cash and cash equivalents were $2,722 million compared with $2,334 million as of Dec 31, 2016.
Long-term debt as of Oct 1, 2017 was $3,979 million, up from the 2016-end level of $2,988 million.
As of Oct 1, 2017, the company’s cash flow from operating activities was around $1,881 million compared with $1,372 million in the year-ago period.
Free cash flow from operations at the end of the third quarter was $751 million, compared with $389 million in the previous year.
Huntington Ingalls Industries, Inc. (HII - Free Report) is expected to report third-quarter 2017 results on Nov 8. The company surpassed the Zacks Consensus Estimate in the trailing four quarters, with a positive average surprise of 8.56%. It has a solid long-term earnings growth rate of 15%.
Recent Peer Release
Lockheed Martin Corp. (LMT - Free Report) reported third-quarter 2017 earnings from continuing operations of $3.24 per share, which missed the Zacks Consensus Estimate of $3.25 by 0.3%. In the quarter, total revenues came in at $12.17 billion, which missed the Zacks Consensus Estimate of $12.83 billion by 5.1%.
Textron Inc. (TXT - Free Report) recently reported third-quarter 2017 adjusted earnings from continuing operations of 65 cents per share, beating the Zacks Consensus Estimate of 62 cents by 4.8%. Total revenues in the quarter were $3.48 billion, which missed the Zacks Consensus Estimate of $3.54 billion by 1.5%.
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General Dynamics (GD) Beats Q3 Earnings, Revenues Dip Y/Y
General Dynamics Corporation (GD - Free Report) reported third-quarter 2017 earnings from continuing operations of $2.52 per share, beating the Zacks Consensus Estimate of $2.43 by 3.7%. Reported earnings were up 6.8% from $2.36 recorded in the year-ago quarter.
Total Revenues
General Dynamics’ third-quarter total revenues of $7,580 million missed the Zacks Consensus Estimate of $7,892 million by 4%. Reported revenues also dipped 1% from $7,657 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 $63.9 billion, down a mere 0.2% year over year. Funded backlog at the quarter end was down 1% to $52.7 billion.
Segment Performance
Aerospace: The segment reported revenues of $1,995 million, up 3.6% year over year. Operating earnings of $385 million increased 2.1% from the prior-year recorded figure of $377 million.
Combat Systems: Segment revenues rose 13% to $1,500 million. Operating earnings were up 18.2% to $247 million in the quarter.
Information Systems and Technology: The segment reported revenues of $2,154 million, down 7.6%. Operating income rose 5.9% to $253 million.
Marine Systems: The segment’s revenues of $1,931 million were down 6.9% from the year-ago figure of $2, 075 million. Operating income also dropped 9.1% to $179 million.
Operational Highlights
Company-wide operating margin expanded 60 basis points (bps) to 13.9% from the year-ago level of 13.3%.
In the quarter under review, General Dynamics’ operating costs and expenses declined 1.7% to $6,528 million.
Financial Condition
As of Oct 1, 2017, General Dynamics’ cash and cash equivalents were $2,722 million compared with $2,334 million as of Dec 31, 2016.
Long-term debt as of Oct 1, 2017 was $3,979 million, up from the 2016-end level of $2,988 million.
As of Oct 1, 2017, the company’s cash flow from operating activities was around $1,881 million compared with $1,372 million in the year-ago period.
Free cash flow from operations at the end of the third quarter was $751 million, compared with $389 million in the previous year.
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.
Upcoming Peer Releases
Huntington Ingalls Industries, Inc. (HII - Free Report) is expected to report third-quarter 2017 results on Nov 8. The company surpassed the Zacks Consensus Estimate in the trailing four quarters, with a positive average surprise of 8.56%. It has a solid long-term earnings growth rate of 15%.
Recent Peer Release
Lockheed Martin Corp. (LMT - Free Report) reported third-quarter 2017 earnings from continuing operations of $3.24 per share, which missed the Zacks Consensus Estimate of $3.25 by 0.3%. In the quarter, total revenues came in at $12.17 billion, which missed the Zacks Consensus Estimate of $12.83 billion by 5.1%.
Textron Inc. (TXT - Free Report) recently reported third-quarter 2017 adjusted earnings from continuing operations of 65 cents per share, beating the Zacks Consensus Estimate of 62 cents by 4.8%. Total revenues in the quarter were $3.48 billion, which missed the Zacks Consensus Estimate of $3.54 billion by 1.5%.
Zacks' Hidden Trades
While we share many recommendations and ideas with the public, certain moves are hidden from everyone but selected members of our portfolio services. Would you like to peek behind the curtain today and view them?
Starting now, for the next month, I invite you to follow all Zacks' private buys and sells in real time from value to momentum...from stocks under $10 to ETF to option movers...from insider trades to companies that are about to report positive earnings surprises (we've called them with 80%+ accuracy). You can even look inside portfolios so exclusive that they are normally closed to new investors.
Click here for Zacks' secret trade>>