General Dynamics ( NYSE: GD ) +1.4% after reporting mixed Q2 results but saying it expects full-year earnings and sales to come in at the high end of previous guidance.
Q2 net income rose to $766M, or $2.77/share, from $737M, or $2.63/share, in the year-earlier quarter, while revenues slipped 0.3% Y/Y to $9.19B, missing analyst estimates, as business jet demand remained strong but supply chain problems continued to drag on the defense industry.
Q2 revenues by segment: Technologies -5% to $3.01B, Marine Systems +4.5% to $2.65B, Aerospace +15% to $1.87B, Combat Systems -12% to $1.67B.
General Dynamics ( GD ) said it delivered 22 Gulfstream business jets during the quarter, up from 21 jets a year earlier, and reaffirmed expectations it would deliver 123 total aircraft in 2022.
On the company's earnings conference call, executives reportedly said full-year EPS should come in at the high end of guidance of $12.00-$12.15, and they expect an additional $200M in revenues in the Aerospace segment with a ~12.9% operating margin, which would be 10 bps higher than prior guidance.
"Demand in the quarter was very strong in Aerospace, with margins showing steady improvement year over year," CEO Phebe Novakovic said.
General Dynamics' ( GD ) stock price return shows a 6% YTD gain and a 13% increase during the past year .
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General Dynamics bumps up after seeing full-year EPS at high end of guidance