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General Dynamics' (GD) Q4 Earnings Miss, Revenues Up Y/Y
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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.
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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.