General Dynamics (GD) Q2 Earnings Beat, Revenues Rise Y/Y
General Dynamics Corporation GD reported second-quarter 2023 earnings per share (EPS) of $2.70, which beat the Zacks Consensus Estimate of $2.59 by 4.2%. However, the figure decreased 1.8% from $2.75 per share recorded in the year-ago quarter.
Total Revenues
General Dynamics’ revenues of $10,152 million beat the Zacks Consensus Estimate of $9,413.3 million by 7.8%. The top line also improved 10.5% from that reported in the prior-year period.
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 $1,953 million, up 4.6% year over year. Operating earnings of $236 million declined 0.8% from the prior-year quarter’s $238 million.
Marine Systems: This segment’s revenues rose 15.4% to $3,059 million from the year-ago quarter. Operating earnings of $235 million increased 11.4% from the year-ago quarter’s reported numbers.
Technologies: The segment’s revenues improved 7% year over year to $3,216 million. Operating earnings totaled $283 million, down 6.9% from the $304 million recorded in the prior-year quarter.
Combat Systems: The segment’s revenues of $1,924 million were up 15.5% from the year-ago quarter’s $1,666 million. Operating earnings also improved 2.4% year over year to $251 million.
Operational Highlights
GD’s operating earnings were $962 million, down 1.6% from the year-ago quarter’s reported figure of $978 million.
Operating costs and expenses increased 11.9% to $9.2 million from the year-ago period.
Interest expenses declined 6.3% year over year to $89 million.
Backlog
General Dynamics recorded a total backlog of $87.63 billion, down 2.4% from the fourth-quarter 2022’s backlog of $89.83 billion. The funded backlog at the second-quarter end was $67.89 billion.
Our model projected a backlog worth $91.22 billion in the second quarter of 2023.
Financial Condition
As of Jul 2, 2023, General Dynamics’ cash and cash equivalents were $1,154 million compared with $1,242 million as of Dec 31, 2022.
The long-term debt as of Jul 2, 2023 was $9,247 million, up from the 2022-end level of $9,243 million.
As of Jul 2, 2023, GD generated cash from operating activities of $2,193 million, down from the $2,627 million recorded in the year-ago period.
Zacks Rank
General Dynamics currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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