General Dynamics Corporation ( GD Quick Quote GD - Free Report) reported second-quarter 2020 earnings from continuing operations of $2.18 per share, which beat the Zacks Consensus Estimate of $2.14 by 1.89%. Operating earnings, however, plunged 21.3% from $2.77 per share in the year-ago quarter. Total Revenues
General Dynamics’ second-quarter revenues of $9,264 million surpassed the Zacks Consensus Estimate of $9,113 million by 1.7%. However, revenues declined 3% from $9,555 million in the year-ago quarter.
General Dynamics recorded a total backlog of $82.7 billion, up 22% year over year. The year-over-year increase was owing to higher orders received by the Marine System segment. Funded backlog at the quarter-end was $54.4 billion.
Segmental Performance Aerospace: The segment reported revenues of $1,974 million, down 7.6% year over year. However, operating earnings of $159 million plunged 52% from the prior-year quarter’s $331 million. Combat Systems: Segment revenues rose 5.7% from the prior-year quarter to $1,754 million. However, operating earnings were down 1.2% from the year-ago quarter to $239 million. Information Systems and Technology: The segment reported revenues of $1,884 million, which declined 12.7% year over year. Operating earnings also dropped 46.1% from the prior-year period to $83 million. Marine Systems: The segment’s revenues of $2,471 million were up 6.3% from the year-ago quarter’s $2,325 million. Operating earnings also improved 1.5% from the year-ago level to $200 million. Mission Systems: The segment’s revenues of $1,181 million declined 7.5% from the year-ago quarter’s $1,277 million. Operating earnings of $164 million, however, increased 1.2% from the year-ago quarter’s $162 million. General Dynamics Corporation Price, Consensus and EPS Surprise
Company-wide operating margin contracted 230 basis points (bps) to 9.1% from the year-ago quarter’s 11.4%.
In the quarter under review, General Dynamics’ operating costs and expenses declined 0.5% from the year-ago period to $8,423 million. Interest expenses in the reported quarter increased 10.9% year over year to $132 million. Financial Condition
As of Jun 28, 2020, General Dynamics’ cash and cash equivalents were $2,300 million compared with $902 million on Dec 31, 2019.
Long-term debt as of Jun 28, 2020, was $10,470 million, which escalated from the 2019-end level of $9,010 million. At the end of the first half of 2020, the company generated cash from operating activities of $177 million against $504 million used in the year-ago period. Zacks Rank
General Dynamics currently carries a Zacks Rank #4 (Sell).
Recent Defense Releases
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