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General Dynamics (GD) Q3 Earnings Top, Revenues Rise Y/Y

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General Dynamics Corporation (GD - Free Report) reported third-quarter 2022 earnings per share (EPS) of $3.26, which beat the Zacks Consensus Estimate of $3.16 by 3.2%. Quarterly earnings increased 6.2% from $3.07 per share in the year-ago quarter.

Total Revenues

General Dynamics’ third-quarter revenues of $9,975 million beat the Zacks Consensus Estimate of $9,919 million by 0.6%. Revenues also improved 4.3% from the year-ago quarter.

Segmental Performance

Aerospace: The segment reported revenues of $2,347 million, up 13.6% year over year. Operating earnings of $312 million increased 19.1% from the prior-year quarter’s $262 million.

Marine Systems: This segment’s revenues rose 5% from the prior-year quarter to $2,769 million. Operating earnings were up 3.9% from the year-ago quarter to $238 million.

Technologies: The segment’s reported revenues of $3,071 million decreased 1.6% year over year. Operating earnings of $285 million declined 12.8% from the prior-year quarter’s $327 million.

Combat Systems: The segment’s revenues of $1,788 million were up 2.5% from the year-ago quarter’s $1,745 million. Operating earnings also declined 1.8% year over year to $271 million.

Operational Highlights

For the reported quarter, GD’s operating margin contracted 30 basis points from the year-ago quarter’s reported figure to 11%.

For the quarter under review, General Dynamics’ operating costs and expenses went up 4.6% from the year-ago period to $8,877 million.
Interest expenses for the reported quarter declined 13.1% year over year to $86 million.

Backlog

General Dynamics recorded a total backlog of $88.80 billion, up 1.3% from second-quarter 2022’s backlog of $87.63 billion. The funded backlog at third-quarter end was $61.61 billion.

Financial Condition

As of Oct 2, 2022, General Dynamics’ cash and cash equivalents were $2,496 million compared with $1,603 million as of Dec 31, 2021.

Long-term debt as of Oct 2, 2022 was $9,239 million, down from the 2021-end level of $10,490 million.

As of Oct 2, 2022, GD generated cash from operating activities of $3,910 million, up from $2,589 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

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