We use cookies to understand how you use our site and to improve your experience.
This includes personalizing content and advertising.
By pressing "Accept All" or closing out of this banner, you consent to the use of all cookies and similar technologies and the sharing of information they collect with third parties.
You can reject marketing cookies by pressing "Deny Optional," but we still use essential, performance, and functional cookies.
In addition, whether you "Accept All," Deny Optional," click the X or otherwise continue to use the site, you accept our Privacy Policy and Terms of Service, revised from time to time.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
General Dynamics (GD) Q3 Earnings Beat, Revenues Rise Y/Y
Read MoreHide Full Article
General Dynamics Corporation (GD - Free Report) reported third-quarter 2023 earnings per share (EPS) of $3.04, which beat the Zacks Consensus Estimate of $2.87 by 5.9%. However, the figure decreased 6.7% from $3.26 per share recorded in the year-ago quarter.
Total Revenues
General Dynamics’ revenues of $10,571 million beat the Zacks Consensus Estimate of $9,936.5 million by 6.4%. The top line also improved 6% from the prior-year reported figure.
General Dynamics Corporation Price, Consensus and EPS Surprise
Aerospace: The segment reported revenues of $2,032 million, down 13.4% year over year. Operating earnings of $268 million declined 14.1% from the prior-year quarter’s $312 million.
Marine Systems: This segment’s revenues rose 8.4% to $3,002 million from the year-ago quarter. Operating earnings of $211 million decreased 11.3% from the year-ago quarter’s reported numbers.
Technologies: The segment’s revenues improved 7.9% year over year to $3,313 million. Operating earnings totaled $315 million, up 10.5% from the $285 million recorded in the prior-year quarter.
Combat Systems: The segment’s revenues of $2,224 million were up 24.4% from the year-ago quarter’s $1,788 million. Operating earnings also improved 10.7% year over year to $300 million.
Operational Highlights
GD’s operating earnings were $1,057 million, down 3.7% from the year-ago quarter’s reported figure of $1,098 million.
Operating costs and expenses increased 7.2% to $9.5 million from the year-ago period.
Interest expenses declined 1.2% year over year to $85 million.
Backlog
General Dynamics recorded a total backlog of $95.56 billion, up 9.1% from the second-quarter 2023’s backlog of $87.63 billion. The funded backlog at the third-quarter end was $74.31 billion.
Our model projected a backlog worth $93.08 billion in the third quarter of 2023.
Financial Condition
As of Oct 1, 2023, General Dynamics’ cash and cash equivalents were $1,352 million compared with $1,242 million as of Dec 31, 2022.
The long-term debt as of Oct 1, 2023 was $9,248 million, up from the 2022-end level of $9,243 million.
As of Oct 1, 2023, GD generated cash from operating activities of $3,514 million, down from the $3,910 million recorded in the year-ago period.
Hexcel Corporation (HXL - Free Report) reported third-quarter 2023 adjusted earnings of 38 cents per share, which missed the Zacks Consensus Estimate of 42 cents by 9.5%. However, the bottom line improved 15.2% from the year-ago earnings of 33 cents per share.
In the third quarter, net sales totaled $420 million, which missed the Zacks Consensus Estimate of $431 million by 2.6%. However, the top line witnessed an improvement of 15% from the year-ago quarter’s $365 million.
Lockheed Martin Corporation (LMT - Free Report) reported third-quarter 2023 adjusted earnings of $6.77 per share, which beat the Zacks Consensus Estimate of $6.66 by 1.7%. However, the bottom line deteriorated 1.5% from the year-ago quarter's recorded figure.
Net sales were $16.88 billion in the reported quarter, which surpassed the Zacks Consensus Estimate of $16.66 billion by 1.3%. The top line rose 1.8% from $16.58 billion reported in the year-ago quarter.
AAR Corp. (AIR - Free Report) reported first-quarter fiscal 2024 adjusted earnings of 78 cents per share, which surpassed the Zacks Consensus Estimate of 73 cents by 6.9%. Earnings surged 27.9% from the year-ago quarter.
In the quarter under review, AAR generated net sales worth $549.7 million. The reported figure surpassed the Zacks Consensus Estimate by 8.7% and increased 23.2% from $446.3 million recorded in the year-ago quarter.
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
General Dynamics (GD) Q3 Earnings Beat, Revenues Rise Y/Y
General Dynamics Corporation (GD - Free Report) reported third-quarter 2023 earnings per share (EPS) of $3.04, which beat the Zacks Consensus Estimate of $2.87 by 5.9%. However, the figure decreased 6.7% from $3.26 per share recorded in the year-ago quarter.
Total Revenues
General Dynamics’ revenues of $10,571 million beat the Zacks Consensus Estimate of $9,936.5 million by 6.4%. The top line also improved 6% from the prior-year reported figure.
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 $2,032 million, down 13.4% year over year. Operating earnings of $268 million declined 14.1% from the prior-year quarter’s $312 million.
Marine Systems: This segment’s revenues rose 8.4% to $3,002 million from the year-ago quarter. Operating earnings of $211 million decreased 11.3% from the year-ago quarter’s reported numbers.
Technologies: The segment’s revenues improved 7.9% year over year to $3,313 million. Operating earnings totaled $315 million, up 10.5% from the $285 million recorded in the prior-year quarter.
Combat Systems: The segment’s revenues of $2,224 million were up 24.4% from the year-ago quarter’s $1,788 million. Operating earnings also improved 10.7% year over year to $300 million.
Operational Highlights
GD’s operating earnings were $1,057 million, down 3.7% from the year-ago quarter’s reported figure of $1,098 million.
Operating costs and expenses increased 7.2% to $9.5 million from the year-ago period.
Interest expenses declined 1.2% year over year to $85 million.
Backlog
General Dynamics recorded a total backlog of $95.56 billion, up 9.1% from the second-quarter 2023’s backlog of $87.63 billion. The funded backlog at the third-quarter end was $74.31 billion.
Our model projected a backlog worth $93.08 billion in the third quarter of 2023.
Financial Condition
As of Oct 1, 2023, General Dynamics’ cash and cash equivalents were $1,352 million compared with $1,242 million as of Dec 31, 2022.
The long-term debt as of Oct 1, 2023 was $9,248 million, up from the 2022-end level of $9,243 million.
As of Oct 1, 2023, GD generated cash from operating activities of $3,514 million, down from the $3,910 million recorded 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
Hexcel Corporation (HXL - Free Report) reported third-quarter 2023 adjusted earnings of 38 cents per share, which missed the Zacks Consensus Estimate of 42 cents by 9.5%. However, the bottom line improved 15.2% from the year-ago earnings of 33 cents per share.
In the third quarter, net sales totaled $420 million, which missed the Zacks Consensus Estimate of $431 million by 2.6%. However, the top line witnessed an improvement of 15% from the year-ago quarter’s $365 million.
Lockheed Martin Corporation (LMT - Free Report) reported third-quarter 2023 adjusted earnings of $6.77 per share, which beat the Zacks Consensus Estimate of $6.66 by 1.7%. However, the bottom line deteriorated 1.5% from the year-ago quarter's recorded figure.
Net sales were $16.88 billion in the reported quarter, which surpassed the Zacks Consensus Estimate of $16.66 billion by 1.3%. The top line rose 1.8% from $16.58 billion reported in the year-ago quarter.
AAR Corp. (AIR - Free Report) reported first-quarter fiscal 2024 adjusted earnings of 78 cents per share, which surpassed the Zacks Consensus Estimate of 73 cents by 6.9%. Earnings surged 27.9% from the year-ago quarter.
In the quarter under review, AAR generated net sales worth $549.7 million. The reported figure surpassed the Zacks Consensus Estimate by 8.7% and increased 23.2% from $446.3 million recorded in the year-ago quarter.