Advertisement
Canada markets close in 5 hours 55 minutes

  • S&P/TSX

    21,687.14
    +31.09 (+0.14%)
     

  • S&P 500

    5,021.97
    -0.24 (-0.00%)
     

  • DOW

    37,903.33
    +150.02 (+0.40%)
     

  • CAD/USD

    0.7263
    -0.0001 (-0.01%)
     

  • CRUDE OIL

    82.76
    +0.07 (+0.08%)
     

  • Bitcoin CAD

    86,372.37
    +376.27 (+0.44%)
     

  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     

  • GOLD FUTURES

    2,394.50
    +6.10 (+0.26%)
     

  • RUSSELL 2000

    1,948.44
    +0.49 (+0.03%)
     

  • 10-Yr Bond

    4.6220
    +0.0370 (+0.81%)
     

  • NASDAQ

    15,644.26
    -39.11 (-0.25%)
     

  • VOLATILITY

    18.02
    -0.19 (-1.04%)
     

  • FTSE

    7,864.52
    +16.53 (+0.21%)
     

  • NIKKEI 225

    38,079.70
    +117.90 (+0.31%)
     

  • CAD/EUR

    0.6817
    +0.0015 (+0.22%)
     
MARKETS LIVE BLOG:

STOCKS RISE AT OPEN AS TECHS REVIVE, WITH NETFLIX EARNINGS ON TAP

U.S. bond yields continue to slip away from recent five-month highs, easing pressure on stocks

General Dynamics' (GD) Q2 Earnings Beat, Backlog Up Y/Y

Zacks Equity Research

General Dynamics Corporation GD reported second-quarter 2019 earnings from continuing operations of $2.77 per share, which beat the Zacks Consensus Estimate of $2.68 by 736%. Operating earnings also improved 5.7% from $2.62 in the year-ago quarter.

Total Revenues

General Dynamics’ second-quarter revenues of $9,555 million surpassed the Zacks Consensus Estimate of $9,402 million by 1.6%. Further, revenues increased 4% from $9,186 million in the year-ago quarter. In fact, revenues grew year over year in all the company’s segments (except the Information Systems and Technology segment).

Backlog

General Dynamics recorded a total backlog of $67.6 billion, up 1.96% year over year. The year-over-year increase in backlog was due to higher orders received by its Marine System segment. Funded backlog at the quarter-end was $54.4 billion.

 

General Dynamics Corporation Price, Consensus and EPS Surprise

 

General Dynamics Corporation Price, Consensus and EPS Surprise
General Dynamics Corporation Price, Consensus and EPS Surprise

General Dynamics Corporation price-consensus-eps-surprise-chart | General Dynamics Corporation Quote

ADVERTISEMENT


Segmental Performance

Aerospace: The segment reported revenues of $2,136 million, up 12.7% year over year. However, operating earnings of $331 million declined 14.2% from the prior-year quarter’s $386 million.

Combat Systems: Segment revenues rose 8.1% from the prior-year quarter to $1,659 million. Moreover, operating earnings were up 2.5% from the year-ago quarter to $242 million.

Information Systems and Technology: The segment reported revenues of $2,158 million, which declined 11.6% year over year. Operating earnings also dropped 1.3% from the prior-year period to $154 million.

Marine Systems: The segment’s revenues of $2,325 million were up 7.2% from the year-ago quarter’s $2,168 million. Operating earnings also improved 1% from the year-ago level to $197 million.

Mission Systems: The segment’s revenues of $1,277 million increased 11.3% from the year-ago quarter’s $1,147 million. Operating earnings of $162 million also increased 5.9% from the year-ago quarter’s $153 million.

Operational Highlights

Company-wide operating margin contracted 40 basis points (bps) to 11.4% from the year-ago quarter’s 11.8%.

In the quarter under review, General Dynamics’ operating costs and expenses rose 14.3% from the year-ago period to $16,712 million.

Interest expenses in the reported quarter increased 81.5% year over year to $236 million.

Financial Condition

As of Jun 30, 2019, General Dynamics’ cash and cash equivalents were $702 million compared with $963 million on Dec 31, 2018.

Long-term debt as of Jun 30, 2019 was $8,975 million, which massively declined from the 2018-end level of $11,444 million.

In the first six months of 2019, the company’s cash used for operating activities was $504 million compared with $291 million cash provided by operating activities in the comparable year-ago period.

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.

Recent Defense Releases

Textron Inc. TXT reported second-quarter 2019 earnings from continuing operations of 93 cents per share, which surpassed the Zacks Consensus Estimate of 85 cents by 9.4%.

Lockheed Martin Corp. LMT reported second-quarter 2019 earnings of $5 per share, which surpassed the Zacks Consensus Estimate of $4.74 by 5.5%.

Hexcel Corporation HXL reported second-quarter 2019 earnings of 94 cents per share, which surpassed the Zacks Consensus Estimate of 88 cents by 6.8%.

The Hottest Tech Mega-Trend of All

Last year, it generated $8 billion in global revenues. By 2020, it's predicted to blast through the roof to $47 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.

See Zacks' 3 Best Stocks to Play This Trend >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
Lockheed Martin Corporation (LMT) : Free Stock Analysis Report
 
General Dynamics Corporation (GD) : Free Stock Analysis Report
 
Hexcel Corporation (HXL) : Free Stock Analysis Report
 
Textron Inc. (TXT) : Free Stock Analysis Report
 
To read this article on Zacks.com click here.
 
Zacks Investment Research