GD - General Dynamics rises after quarterly results beat estimates
2023-07-26 14:04:24 ET
General Dynamics ( NYSE: GD ) rose as much as 3.2% on Wednesday after the aerospace and defense company reported quarterly results that beat the average estimates of Wall Street analysts.
Revenue rose 10% to $10.15 billion, compared with the consensus estimate of $9.47 billion.
Net earnings slipped 2.9% to $744 million, or $2.70 a share, from $766 million, or $2.75 a share, a year earlier, to beat the consensus estimate of $2.60 a share.
The company’s marine systems unit, which makes warships and nuclear submarines, boosted sales by 15% to $3.06 billion with an operating margin of 7.7%.
Combat systems, which makes armored vehicles, tanks and artillery, increased sales by 15% to $1.92 billion with an operating margin of 13%.
Total operating costs climbed 12% to $9.19 billion, while its backlog rose 4.3% from a year earlier to $91.4 billion.
The company lowered its estimate for revenue from its aerospace unit, whose brands include Gulfstream jets, by almost $200 million to end the year at $10.2 billion. Management expects to deliver five to six fewer aircraft than the 145 expected at the beginning of the year. It also awaits certification from the Federal Aviation Administration on its new G700 business jet.
Phebe Novakovic, chairman and CEO of General Dynamics ( GD ), said in an investor call that its aerospace supply chain is improving.
“We still have a significant backlog of late parts, but processes are in place to catch up,” she said. “Deliveries are trending positive and we have greater transparency. In short, the suppliers are more predictable and are complying with catch-up schedules. This will help both revenue and margins as we do less out-of-station work.”
More about General Dynamics
- Defense and weapon stocks in focus as Biden heads to NATO summit
- Blackstone said to be among possible buyers of Ball’s aerospace unit
- Large defense contracts fell 17% to $13B in Q2: William Blair
For further details see:
General Dynamics rises after quarterly results beat estimates