General Dynamics Corporation GD reported third-quarter 2019 earnings from continuing operations of $3.14 per share, which beat the Zacks Consensus Estimate of $3.06 by 2.6%. The bottom line also improved 10.2% from the prior-year quarter’s $2.85 per share.
The company reported GAAP earnings of $3.17 per share compared with the year-ago quarter’s $2.88.
General Dynamics’ third-quarter revenues of $9,761 million surpassed the Zacks Consensus Estimate of $9,682 million by 0.82%. Further, revenues grew 7.3% from $9,094 million in the year-ago quarter. The year-over-year increase can be attributed to growth in Aerospace, Combat and Marine Systems segments.
General Dynamics’ total backlog at the end of third-quarter 2019 was $67.4 billion. Estimated potential contract value, representing management’s estimate of value in contracts and unexercised options, was $35.6 billion. Total estimated contract value, the sum of all backlog components, was $103 billion.
Aerospace: The segment reported revenues of $2,495 million, up 22.8% year over year. Operating earnings of $393 million rose 4.5% from the prior-year quarter’s $376 million.
Combat Systems: Segment revenues rose 14.2% from the prior-year quarter to $1,740 million. Moreover, operating earnings were up 9.5% from the year-ago quarter to $264 million.
Information Systems and Technology: The segment reported revenues of $2,071 million, which declined 10.2% year over year. Operating earnings also dropped 7% from the prior-year period to $146 million.
Marine Systems: The segment’s revenues of $2,235 million were up 11.6% from the year-ago quarter’s $2,003 million. Operating earnings also improved 23.7% year over year to $209 million.
Mission Systems: The segment’s revenues of $1,220 million declined 0.8% from the year-ago quarter’s $1,230 million. Operating earnings of $185 million grew 3.4% from the year-ago quarter’s $179 million.
General Dynamics Corporation Price, Consensus and EPS Surprise
General Dynamics Corporation price-consensus-eps-surprise-chart | General Dynamics Corporation Quote
Company-wide operating margin was in line with the year-ago quarter’s operating margin of 12.5%.
In the quarter under review, General Dynamics’ operating costs and expenses rose 7.4% from the year-ago period to $8,545 million.
Interest expenses in the reported quarter amounted to $114 million, in line with the year-ago quarter’s number.
As of Sep 29, 2019, General Dynamics’ cash and cash equivalents were $974 million compared with $963 million on Dec 31, 2018.
Long-term debt as of Sep 29, 2019, was $8,989 million, which massively declined from the 2018-end level of $11,444 million.
In the first nine months of 2019, the company’s cash provided by operating activities was $587 million compared with $1,081 million in the year-ago period.
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
Lockheed Martin Corp. LMT reported third-quarter 2019 earnings of $5.66 per share, which surpassed the Zacks Consensus Estimate of $5.03 by 12.5%. The bottom line also improved 10.1% from $5.14 registered in the year-ago quarter.
Textron Inc. TXT reported third-quarter 2019 earnings from continuing operations of 95 cents per share, which surpassed the Zacks Consensus Estimate of 85 cents by 11.8%. The bottom line increased 55.7% from the year-ago quarter.
Upcoming Defense Releases
Leidos Holdings Inc. LDOS, a Zacks Rank #3 stock, is set to report third-quarter 2019 results on Oct 29.
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