Categories Earnings, Industrials

General Dynamics stock up on Q1 earnings beat

General Dynamics (GD) kicked-off fiscal 2019 in style by reporting solid headlines numbers which surpassed analyst estimates. However, increased expenses dragged profits by 6.8%. The company saw healthy order flow from aviation and defense sectors which would be considered as a positive sign by investors. General Dynamics stock has increased modestly by 4% in the pre-market hours post the earnings announcement.

Revenue increased 22.9% to $9.3 billion aided primarily by aerospace and defense information technology portfolios. Top line exceeded analyst estimates of $8.84 billion. Earnings per share contracted 3.4% to $2.56 per share, impacted by the surge in expenses. However, this is better than $2.42 per share expected by the street.

General Dynamics (GD) report Q1 2019 earnings results

Last year, General Dynamics acquired CSRA for $9.7 billion. CSRA is combined with the GDIT post the deal. GDIT revenues doubled to $2.2 billion in the first quarter due to the revenue contribution from the CSRA deal. GDIT’s operating earnings also saw a jump of 54.5% offset by negative growth from all other segments.

General Dynamics’ margins reduced to 10.9% compared to 13.4% reported last year. The company saw a reduction in margins across the board due to increased expenses. However, excluding amortization costs relating to CSRA deal, margins would be 11.5%.

At the end of Q1, backlog improved 11.4% driven by GDIT, Marine Systems and a modest increase in the Aerospace front. Orders stood at $10.7 billion while potential contract value, including unfunded indefinite delivery, indefinite quantity (IDIQ) contracts, rose 33% to $33.9 billion aided by strong improvements in Aerospace and defense side excluding Marine Systems which saw a decrease in contract value.

In the first quarter, General Dynamics bought back 525,000 shares for $86 million. Last month, it also hiked the quarterly dividend by 9.7% to $1.02 per share.

Last quarter, the company provided an outlook for the fiscal 2019 period. EPS is anticipated in the range of $11.6 to $11.7 while revenue is expected to be about $38.5 billion and operating earnings around $4.5 billion. The street is expecting earnings to be $11.71 per share and sales of $38.56 billion.

Browse through our earnings calendar and get all scheduled earnings announcements, analyst/investor conference and much more!

 

Most Popular

Weibo (WB) Earnings: 1Q21 Key Numbers

Weibo Corporation (NASDAQ: WB) reported first-quarter 2021 earnings results today. Net revenues increased by 42% year-over-year at $458.9 million and 31% increase on a constant currency basis. Net income attributable

Earnings calendar for the week of May 10

Stock markets rallied amid mixed cues on the health of the labor market, with latest data showing that payrolls grew at a slower-than-expected pace while unemployment claims slipped below the

Apple-Epic legal fight could set a new paradigm for mobile app distribution

These days the tech world is abuzz with the legal battle between gadget giant Apple, Inc. (NASDAQ: AAPL) and Epic Games, which has elicited significant media interest. The trial in

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top