Categories AlphaGraphs, Earnings, Other Industries

General Dynamics Q2 profit rises 3%, tops estimates

General Dynamics (NYSE: GD) reported a 3% rise in earnings for the second quarter of 2019 helped by lower costs and expenses as well as a decline in income tax provision. The results exceeded analysts’ expectations.

Net income rose by 3% to $806 million and earnings grew by 6% to $2.77 per share driven by lower weighted average shares outstanding.

Revenue increased by 4% to $9.56 billion driven by aerospace and defense portfolios. The results reflected its relentless focus on driving down costs and improving performance.

General Dynamics Q2 profit rises 3% tops estimates

General Dynamics’ total backlog was $67.7 billion at the end of second-quarter 2019. Estimated potential contract value, representing management’s estimate of value in unfunded indefinite delivery, indefinite quantity (IDIQ) contracts and unexercised options, was $34.2 billion. Total estimated contract value, the sum of all backlog components, was $101.9 billion, up 3% year-over-year.

Order activity remained strong across the aerospace and defense portfolios. Aerospace booked $2.2 billion in orders in the quarter, a 1-to-1 book-to-bill on 12.7% year-over-year revenue growth. The company continues to experience strong demand across its product portfolio in its Aerospace segment.

The company expects continued investment in the development of new aircraft products and technologies to support the Aerospace segment’s long-term growth. Similarly, the company believes the aircraft services business will be a strong source of revenue as the global business-jet fleet continues to grow.

Also read: 5G technology replace 4G LTE?

The international demand for military equipment and information technologies presents opportunities for General Dynamics’ non-US operations and exports from its North American businesses. While the revenue potential can be significant, there are risks to doing busines in foreign countries, including changing budget priorities and overall spending pressures unique to each country.

Shares of General Dynamics ended Tuesday’s regular session up 0.73% at $185.97 on the NYSE. Following the earnings release, the stock rose 0.72% in the prevmarket session.

Get access to timely and accurate verbatim transcripts that are published within hours of the event.

Most Popular

Infographic: How eBay (EBAY) performed in Q4 2024

eBay Inc. (NASDAQ: EBAY) reported revenue of $2.6 billion for the fourth quarter of 2024, up 1% year-over-year on both a reported and foreign exchange (FX) neutral basis. GAAP net

Beyond Meat (BYND) Q4 2024 net loss narrows; revenue up 4%

Beyond Meat, Inc. (NASDAQ: BYND), a food company that provides plant-based meat products, on Thursday reported a narrower net loss for the fourth quarter of 2024 amid a modest increase

Key highlights from J.M. Smucker’s (SJM) Q3 2025 earnings results

The J.M. Smucker Co. (NYSE: SJM) reported its third quarter 2025 earnings results today. Net sales was $2.18 billion, down 2% year-over-year. Comparable net sales decreased 1%. Net loss was $662.3

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