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) Q1 Earnings & Revenues Miss Estimates
Read MoreHide Full Article
General Dynamics Corporation (GD - Free Report) reported first-quarter 2020 earnings from continuing operations of $2.43 per share, which missed the Zacks Consensus Estimate of $2.46 by 1.2%. Moreover, earnings declined 5.1% from $2.56 in the year-ago quarter.
Total Revenues
General Dynamics’ first-quarter revenues of $8,749 million missed the Zacks Consensus Estimate of $9,284 million by 5.8%. Further, revenues declined 5.5% from $9,261 million in the year-ago quarter. The decline was primarily attributable to lower sales from the Aerospace segment on a year-over-year basis.
Backlog
The company recorded a total backlog of $85.7 billion, up 23.9% year over year. Funded backlog at the quarter-end was $47.6 billion.
Segment Performance
Aerospace: The segment reported revenues of $1,691 million, down 24.5% year over year. Operating earnings of $240 million also declined 26.8% from the prior-year quarter’s $328 million.
Combat Systems: Segment revenues rose 4.4% to $1,708 million. Moreover, operating earnings were up 8.3% to $223 million in the quarter.
Information Systems and Technology: The segment reported revenues of $1,988 million, which decreased 8.3% year over year. Operating earnings also declined 3.8% to $150 million.
Marine Systems: The segment’s revenues of $2,246 million grew 9.1% from the year-ago quarter’s $2,058 million. Moreover, operating earnings rose 2.2% to $184 million.
Mission Systems: The segment’s revenues of $1,116 million declined 3.6% from the year-ago quarter’s $1,158 million. Operating earnings remained flat at $148 million on a year-over-year basis.
Operational Highlights
The operating margin contracted 10 basis points (bps) to 10.8% from the year-ago quarter’s 10.9%.
In the quarter under review, General Dynamics’ operating costs and expenses declined 5.3% to $7,808 million.
The company repurchased 3.4 million of its outstanding shares in the first quarter of 2020. In March, the board of directors increased the quarterly dividend to $1.10 per share. This 7.8% increase marked the company’s 23rd consecutive annual dividend increase.
General Dynamics Corporation Price, Consensus and EPS Surprise
As of Mar 31, 2020, General Dynamics’ cash and cash equivalents were $5,330 million compared with $902 million as of Dec 31, 2019.
Long-term debt as of Mar 31, 2020, was $12,951 million, which witnessed a rise from the 2019-end level of $9,010 million.
As of Mar 31, 2020, the company’s cash used by operating activities was $666 million compared with $795 million used in the year-ago period.
Free cash outflow from operations at the end of the first quarter of 2020 was $851 million compared with $976 million at the end of the first quarter of 2019.
Zacks Rank
General Dynamics currently carries a Zacks Rank #4 (Sell).
A Recent Defense Release
Lockheed Martin Corp. (LMT - Free Report) , a Zacks Rank #2 (Buy) company, reported first-quarter 2020 earnings of $6.08 per share, which surpassed the Zacks Consensus Estimate of $5.76 by 5.5%. The bottom line also improved 1.5% from the year-ago quarter’s $5.99. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Teledyne Technologies Inc. (TDY - Free Report) , a Zacks Rank #3 (Hold) company, reported first-quarter 2020 earnings of $2.28 per share, which surpassed the Zacks Consensus Estimate of $2.10 by 8.6%. The bottom line also improved 12.9% from the year-ago quarter’s $2.02.
An Upcoming Release
Huntington Ingalls Industries (HII - Free Report) , a Zacks Rank #3 company, is scheduled to report first-quarter 2020 results on May 7.
Zacks Top 10 Stocks for 2020
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?
Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Image: Bigstock
General Dynamics (GD) Q1 Earnings & Revenues Miss Estimates
General Dynamics Corporation (GD - Free Report) reported first-quarter 2020 earnings from continuing operations of $2.43 per share, which missed the Zacks Consensus Estimate of $2.46 by 1.2%. Moreover, earnings declined 5.1% from $2.56 in the year-ago quarter.
Total Revenues
General Dynamics’ first-quarter revenues of $8,749 million missed the Zacks Consensus Estimate of $9,284 million by 5.8%. Further, revenues declined 5.5% from $9,261 million in the year-ago quarter. The decline was primarily attributable to lower sales from the Aerospace segment on a year-over-year basis.
Backlog
The company recorded a total backlog of $85.7 billion, up 23.9% year over year. Funded backlog at the quarter-end was $47.6 billion.
Segment Performance
Aerospace: The segment reported revenues of $1,691 million, down 24.5% year over year. Operating earnings of $240 million also declined 26.8% from the prior-year quarter’s $328 million.
Combat Systems: Segment revenues rose 4.4% to $1,708 million. Moreover, operating earnings were up 8.3% to $223 million in the quarter.
Information Systems and Technology: The segment reported revenues of $1,988 million, which decreased 8.3% year over year. Operating earnings also declined 3.8% to $150 million.
Marine Systems: The segment’s revenues of $2,246 million grew 9.1% from the year-ago quarter’s $2,058 million. Moreover, operating earnings rose 2.2% to $184 million.
Mission Systems: The segment’s revenues of $1,116 million declined 3.6% from the year-ago quarter’s $1,158 million. Operating earnings remained flat at $148 million on a year-over-year basis.
Operational Highlights
The operating margin contracted 10 basis points (bps) to 10.8% from the year-ago quarter’s 10.9%.
In the quarter under review, General Dynamics’ operating costs and expenses declined 5.3% to $7,808 million.
The company repurchased 3.4 million of its outstanding shares in the first quarter of 2020. In March, the board of directors increased the quarterly dividend to $1.10 per share. This 7.8% increase marked the company’s 23rd consecutive annual dividend increase.
General Dynamics Corporation Price, Consensus and EPS Surprise
General Dynamics Corporation price-consensus-eps-surprise-chart | General Dynamics Corporation Quote
Financial Condition
As of Mar 31, 2020, General Dynamics’ cash and cash equivalents were $5,330 million compared with $902 million as of Dec 31, 2019.
Long-term debt as of Mar 31, 2020, was $12,951 million, which witnessed a rise from the 2019-end level of $9,010 million.
As of Mar 31, 2020, the company’s cash used by operating activities was $666 million compared with $795 million used in the year-ago period.
Free cash outflow from operations at the end of the first quarter of 2020 was $851 million compared with $976 million at the end of the first quarter of 2019.
Zacks Rank
General Dynamics currently carries a Zacks Rank #4 (Sell).
A Recent Defense Release
Lockheed Martin Corp. (LMT - Free Report) , a Zacks Rank #2 (Buy) company, reported first-quarter 2020 earnings of $6.08 per share, which surpassed the Zacks Consensus Estimate of $5.76 by 5.5%. The bottom line also improved 1.5% from the year-ago quarter’s $5.99. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Teledyne Technologies Inc. (TDY - Free Report) , a Zacks Rank #3 (Hold) company, reported first-quarter 2020 earnings of $2.28 per share, which surpassed the Zacks Consensus Estimate of $2.10 by 8.6%. The bottom line also improved 12.9% from the year-ago quarter’s $2.02.
An Upcoming Release
Huntington Ingalls Industries (HII - Free Report) , a Zacks Rank #3 company, is scheduled to report first-quarter 2020 results on May 7.
Zacks Top 10 Stocks for 2020
In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-hold tickers for the entirety of 2020?
Last year's 2019 Zacks Top 10 Stocks portfolio returned gains as high as +102.7%. Now a brand-new portfolio has been handpicked from over 4,000 companies covered by the Zacks Rank. Don’t miss your chance to get in on these long-term buys.
Access Zacks Top 10 Stocks for 2020 today >>