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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.
General Dynamics Corporation Price, Consensus and EPS Surprise
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.
Lockheed Martin (LMT - Free Report) reported third-quarter 2022 adjusted earnings of $6.87 per share, which surpassed the Zacks Consensus Estimate of $6.58 by 4.4%. The bottom line also improved 4.1% year over year.
Its net sales amounted to $16.58 billion, which missed the Zacks Consensus Estimate of $16.82 billion by 1.4%. The top line, however, rose 3.5% from $16.03 billion reported in the year-ago quarter.
Raytheon Technologies’ (RTX - Free Report) third-quarter 2022 adjusted earnings per share of $1.21 beat the Zacks Consensus Estimate of $1.11 by 9%. However, the bottom-line figure dropped 4% year over year.
The company’s third-quarter sales of $16,951 million missed the Zacks Consensus Estimate of $17,003 million by 0.3%. The sales figure, however, rose 5% from $16,213 million recorded in the year-ago quarter.
Hexcel Corporation (HXL - Free Report) reported third-quarter 2022 adjusted earnings of 33 cents per share, which exceeded the Zacks Consensus Estimate of 32 cents by 3.1%. The bottom line improved a solid 153.8% year over year.
In the third quarter, net sales totaled $364.7 million, which lagged the Zacks Consensus Estimate of $391 million by 6.8%. However, the top line witnessed an improvement of 9.3% from the year-ago quarter.
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General Dynamics (GD) Q3 Earnings Top, Revenues Rise Y/Y
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.
General Dynamics Corporation Price, Consensus and EPS Surprise
General Dynamics Corporation price-consensus-eps-surprise-chart | General Dynamics Corporation Quote
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
Recent Defense Releases
Lockheed Martin (LMT - Free Report) reported third-quarter 2022 adjusted earnings of $6.87 per share, which surpassed the Zacks Consensus Estimate of $6.58 by 4.4%. The bottom line also improved 4.1% year over year.
Its net sales amounted to $16.58 billion, which missed the Zacks Consensus Estimate of $16.82 billion by 1.4%. The top line, however, rose 3.5% from $16.03 billion reported in the year-ago quarter.
Raytheon Technologies’ (RTX - Free Report) third-quarter 2022 adjusted earnings per share of $1.21 beat the Zacks Consensus Estimate of $1.11 by 9%. However, the bottom-line figure dropped 4% year over year.
The company’s third-quarter sales of $16,951 million missed the Zacks Consensus Estimate of $17,003 million by 0.3%. The sales figure, however, rose 5% from $16,213 million recorded in the year-ago quarter.
Hexcel Corporation (HXL - Free Report) reported third-quarter 2022 adjusted earnings of 33 cents per share, which exceeded the Zacks Consensus Estimate of 32 cents by 3.1%. The bottom line improved a solid 153.8% year over year.
In the third quarter, net sales totaled $364.7 million, which lagged the Zacks Consensus Estimate of $391 million by 6.8%. However, the top line witnessed an improvement of 9.3% from the year-ago quarter.