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General Dynamics' (GD) Q2 Earnings Beat, Revenues Miss Estimates
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General Dynamics Corporation (GD - Free Report) reported second-quarter 2021 earnings from continuing operations of $2.61 per share, which beat the Zacks Consensus Estimate of $2.52 by 3.6%.
Operating earnings improved 7% from $2.18 per share in the year-ago quarter.
Total Revenues
General Dynamics’ second-quarter revenues of $9,220 million missed the Zacks Consensus Estimate of $9,230 million by 0.1%. Revenues also declined 0.5% from $9,264 million in the year-ago quarter.
Backlog
General Dynamics recorded a total backlog of $89.2 billion, up 7.9% year over year. Funded backlog at the quarter-end was $41.1 billion.
Segmental Performance
Aerospace: The segment reported revenues of $1,662 million, down 17.8% year over year. However, operating earnings of $195 million improved 22.6% from the prior-year quarter’s $159 million.
Combat Systems: Segment revenues rose 8.3% from the prior-year quarter to $1,899 million. However, operating earnings were up 11.3% from the year-ago quarter to $266 million.
Technologies: The segment reported revenues of $3,163 million, which increased 3.2% year over year. Operating earnings of $308 million grew 24.7% from the prior-year quarter’s $247 million.
Marine Systems: The segment’s revenues of $2,536 million were up 2.6% from the year-ago quarter’s $2,471 million. Operating earnings also improved 5% year over year to $210 million.
General Dynamics Corporation Price, Consensus and EPS Surprise
Company-wide operating margin expanded 140 basis points (bps) to 10.4% from the year-ago quarter’s 9%.
In the quarter under review, General Dynamics’ operating costs and expenses increased 2.9% from the year-ago period to $16,712 million.
Interest expenses in the reported quarter declined 2.9% year over year to $232 million.
Financial Condition
As of Jul 4, 2021, General Dynamics’ cash and cash equivalents were $2,950 million compared with $2,824 million as of Dec 31, 2020.
Long-term debt as of Jun 28, 2021, was $11,485 million, which escalated from the 2020-end level of $9,995 million.
At the end of the first half of 2021, the company generated cash from operating activities of $1,118 million compared with $177 million generated in the year-ago period.
Lockheed Martin Corp. (LMT - Free Report) reported second-quarter 2021 adjusted earnings of $7.13 per share, which surpassed the Zacks Consensus Estimate of $6.51 by 9.5%.
Teledyne Technologies Inc. (TDY - Free Report) reported second-quarter 2021 adjusted earnings of $4.61 per share, which surpassed the Zacks Consensus Estimate of $2.94 by 56.8%. The bottom line also improved 72% from the year-ago quarter’s $2.68.
An Upcoming Q2 Defense Release
Northrop Grumman (NOC - Free Report) will release its results on Jul 29.
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General Dynamics' (GD) Q2 Earnings Beat, Revenues Miss Estimates
General Dynamics Corporation (GD - Free Report) reported second-quarter 2021 earnings from continuing operations of $2.61 per share, which beat the Zacks Consensus Estimate of $2.52 by 3.6%.
Operating earnings improved 7% from $2.18 per share in the year-ago quarter.
Total Revenues
General Dynamics’ second-quarter revenues of $9,220 million missed the Zacks Consensus Estimate of $9,230 million by 0.1%. Revenues also declined 0.5% from $9,264 million in the year-ago quarter.
Backlog
General Dynamics recorded a total backlog of $89.2 billion, up 7.9% year over year. Funded backlog at the quarter-end was $41.1 billion.
Segmental Performance
Aerospace: The segment reported revenues of $1,662 million, down 17.8% year over year. However, operating earnings of $195 million improved 22.6% from the prior-year quarter’s $159 million.
Combat Systems: Segment revenues rose 8.3% from the prior-year quarter to $1,899 million. However, operating earnings were up 11.3% from the year-ago quarter to $266 million.
Technologies: The segment reported revenues of $3,163 million, which increased 3.2% year over year. Operating earnings of $308 million grew 24.7% from the prior-year quarter’s $247 million.
Marine Systems: The segment’s revenues of $2,536 million were up 2.6% from the year-ago quarter’s $2,471 million. Operating earnings also improved 5% year over year to $210 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 expanded 140 basis points (bps) to 10.4% from the year-ago quarter’s 9%.
In the quarter under review, General Dynamics’ operating costs and expenses increased 2.9% from the year-ago period to $16,712 million.
Interest expenses in the reported quarter declined 2.9% year over year to $232 million.
Financial Condition
As of Jul 4, 2021, General Dynamics’ cash and cash equivalents were $2,950 million compared with $2,824 million as of Dec 31, 2020.
Long-term debt as of Jun 28, 2021, was $11,485 million, which escalated from the 2020-end level of $9,995 million.
At the end of the first half of 2021, the company generated cash from operating activities of $1,118 million compared with $177 million generated 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 second-quarter 2021 adjusted earnings of $7.13 per share, which surpassed the Zacks Consensus Estimate of $6.51 by 9.5%.
Teledyne Technologies Inc. (TDY - Free Report) reported second-quarter 2021 adjusted earnings of $4.61 per share, which surpassed the Zacks Consensus Estimate of $2.94 by 56.8%. The bottom line also improved 72% from the year-ago quarter’s $2.68.
An Upcoming Q2 Defense Release
Northrop Grumman (NOC - Free Report) will release its results on Jul 29.