We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
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) Q4 Earnings Miss, Revenues Up Y/Y
Read MoreHide Full Article
General Dynamics Corporation (GD - Free Report) reported fourth-quarter 2023 earnings per share (EPS) of $3.64, which missed the Zacks Consensus Estimate of $3.66 by 0.6%. However, the figure increased 1.7% from $3.58 per share recorded in the year-ago quarter.
General Dynamics reported EPS of $12.02 per share for 2023, which missed the Zacks Consensus Estimate of $12.12 by 0.8%. The bottom line also decreased 1.4% from $12.19 per share recorded in the year-ago quarter.
Total Revenues
General Dynamics’ revenues of $11,668 million in the reported quarter beat the Zacks Consensus Estimate of $11,543 million by 1.1%. The top line also improved 7.5% from the prior-year reported figure.
Revenues were $42.27 billion for 2023, which beat the Zacks Consensus Estimate of $42.14 billion by 0.3%. The top line also rose 7.8% from $39.41 billion reported in the year-ago quarter.
General Dynamics Corporation Price, Consensus and EPS Surprise
Aerospace: The segment reported revenues of $2,744 million, up 12% year over year. Operating earnings of $449 million improved 33.2%.
Marine Systems: This segment’s revenues rose 14.8% to $3,408 million from the year-ago quarter. Operating earnings of $217 million decreased 8.4%.
Technologies: The segment’s revenues decreased 3.1% year over year to $3,152 million. Operating earnings totaled $305 million, down 10.3%.
Combat Systems: The segment’s revenues of $2,364 million were up 8.5% from the year-ago quarter. Operating earnings also improved 5.7% year over year to $351 million.
Operational Highlights
GD’s operating earnings were $1,288 million, up 5% from the year-ago quarter’s $1,227 million.
Operating costs and expenses increased 7.9% to $10.38 billion.
Interest expenses declined 8.2% year over year to $78 million.
Backlog
General Dynamics recorded a total backlog of $93.6 billion, down 2.1% from the third-quarter 2023’s backlog of $95.6 billion. The funded backlog at the fourth-quarter end was $72.48 billion.
Our model projected a backlog worth $95.36 billion for the fourth quarter of 2023.
Financial Condition
As of Dec 31, 2023, General Dynamics’ cash and cash equivalents were $1,913 million compared with $1,242 million as of Dec 31, 2022.
The long-term debt as of Dec 31, 2023, was $8,754 million, down from the 2022-end level of $9,243 million.
For the full year ended Dec 31, 2023, GD generated cash from operating activities of $4,710 million, up from $4,579 million recorded a year ago.
L3Harris Technologies (LHX - Free Report) is scheduled to report fourth-quarter 2023 results on Jan 25, after market close. The Zacks Consensus Estimate for revenues is pegged at $5.29 billion, indicating a 15.5% increase from the year-ago quarter’s reported figure.
The consensus mark for L3Harris’ earnings stands at $3.31 per share, indicating a 1.2% year-over-year improvement.
The Boeing Company (BA - Free Report) is set to release fourth-quarter 2023 results on Jan 31, before the opening bell. The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $21.23 billion, indicating a 6.2% year-over-year increase.
The bottom-line estimates for BA are pegged at a loss of 72 cents per share, indicating a significant improvement from the year-ago quarter’s reported loss of $1.75.
Northrop Grumman (NOC - Free Report) is scheduled to report fourth-quarter 2023 results on Jan 25, before market open. The Zacks Consensus Estimate for revenues is pegged at $10.44 billion, indicating a 4% increase from the year-ago quarter’s reported figure.
The consensus mark for Northrop’s earnings is pegged at $5.75 per share, indicating a 23.3% year-over-year decline.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
General Dynamics' (GD) Q4 Earnings Miss, Revenues Up Y/Y
General Dynamics Corporation (GD - Free Report) reported fourth-quarter 2023 earnings per share (EPS) of $3.64, which missed the Zacks Consensus Estimate of $3.66 by 0.6%. However, the figure increased 1.7% from $3.58 per share recorded in the year-ago quarter.
General Dynamics reported EPS of $12.02 per share for 2023, which missed the Zacks Consensus Estimate of $12.12 by 0.8%. The bottom line also decreased 1.4% from $12.19 per share recorded in the year-ago quarter.
Total Revenues
General Dynamics’ revenues of $11,668 million in the reported quarter beat the Zacks Consensus Estimate of $11,543 million by 1.1%. The top line also improved 7.5% from the prior-year reported figure.
Revenues were $42.27 billion for 2023, which beat the Zacks Consensus Estimate of $42.14 billion by 0.3%. The top line also rose 7.8% from $39.41 billion reported in 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 $2,744 million, up 12% year over year. Operating earnings of $449 million improved 33.2%.
Marine Systems: This segment’s revenues rose 14.8% to $3,408 million from the year-ago quarter. Operating earnings of $217 million decreased 8.4%.
Technologies: The segment’s revenues decreased 3.1% year over year to $3,152 million. Operating earnings totaled $305 million, down 10.3%.
Combat Systems: The segment’s revenues of $2,364 million were up 8.5% from the year-ago quarter. Operating earnings also improved 5.7% year over year to $351 million.
Operational Highlights
GD’s operating earnings were $1,288 million, up 5% from the year-ago quarter’s $1,227 million.
Operating costs and expenses increased 7.9% to $10.38 billion.
Interest expenses declined 8.2% year over year to $78 million.
Backlog
General Dynamics recorded a total backlog of $93.6 billion, down 2.1% from the third-quarter 2023’s backlog of $95.6 billion. The funded backlog at the fourth-quarter end was $72.48 billion.
Our model projected a backlog worth $95.36 billion for the fourth quarter of 2023.
Financial Condition
As of Dec 31, 2023, General Dynamics’ cash and cash equivalents were $1,913 million compared with $1,242 million as of Dec 31, 2022.
The long-term debt as of Dec 31, 2023, was $8,754 million, down from the 2022-end level of $9,243 million.
For the full year ended Dec 31, 2023, GD generated cash from operating activities of $4,710 million, up from $4,579 million recorded a year ago.
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.
Upcoming Defense Releases
L3Harris Technologies (LHX - Free Report) is scheduled to report fourth-quarter 2023 results on Jan 25, after market close. The Zacks Consensus Estimate for revenues is pegged at $5.29 billion, indicating a 15.5% increase from the year-ago quarter’s reported figure.
The consensus mark for L3Harris’ earnings stands at $3.31 per share, indicating a 1.2% year-over-year improvement.
The Boeing Company (BA - Free Report) is set to release fourth-quarter 2023 results on Jan 31, before the opening bell. The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $21.23 billion, indicating a 6.2% year-over-year increase.
The bottom-line estimates for BA are pegged at a loss of 72 cents per share, indicating a significant improvement from the year-ago quarter’s reported loss of $1.75.
Northrop Grumman (NOC - Free Report) is scheduled to report fourth-quarter 2023 results on Jan 25, before market open. The Zacks Consensus Estimate for revenues is pegged at $10.44 billion, indicating a 4% increase from the year-ago quarter’s reported figure.
The consensus mark for Northrop’s earnings is pegged at $5.75 per share, indicating a 23.3% year-over-year decline.