Categories AlphaGraphs, Earnings, Other Industries

General Dynamics reports solid revenue and earnings growth in Q2

General Dynamics (GD) beats revenue and earnings estimates for the second quarter 2018. Despite earnings and revenue topping the estimates, the stock inched down 0.4% in the pre-market trading. Revenue climbed 19.7% to $9.2 billion from the same period last year, fueled by strong defense volumes and the acquisition of CSRA. The defense businesses saw a revenue increase of 7.1% on an organic basis.

Net earnings increased 4.9% to $786 million and diluted EPS grew 6.9% to $2.62 compared to last year. Excluding a one-time charge of $0.20 per share related to the CSRA acquisition, EPS would have improved 15.1% from last year.

CEO Phebe Novakovic said, “We closed on the CSRA acquisition, building on our core GDIT business to create a leading government IT services provider, and integration of the business is well underway. Our Combat and Marine segments continue to have reliable growth with strong operating performance. And the FAA certified the G500 and we look forward to delivering this newest Gulfstream aircraft to our customers in fourth-quarter 2018.”


General Dynamics second quarter 2018 earnings
General Dynamics Q2 2018 Earnings Infographic

The defense contractor had a total backlog of $66.3 billion at the end of the second quarter. The estimated potential contract value, representing management’s estimate of value in unfunded IDIQ contracts and unexercised options, was $32.7 billion. The total potential contract value was $99 billion at the end of Q2. Gulfstream unit orders saw a 21% increase from last year.

During the quarter, General Dynamics received several significant contract awards across its segments. These include a $440 million order from the US Army for the upgradation of Abrams tanks awarded to the Combat Systems division and a $615 million order from the Medicare and Medicaid agencies for contract center services awarded to the Information Technology division.

Rivals Lockheed Martin (LMT) and Northrop Grumman (NOC), both reported their quarterly results today and topped profit estimates. Shares of General Dynamics hit a new 52-week low ($184.21) on June 28 and were up 1.82% at $196.75 at the end of Tuesday’s regular trading session.

Related: General Dynamics Q1 2018 Infographic

Related: General Dynamics wins the battle for CSRA

Related: General Dynamics Corporation Q2 2018 Earnings Call Transcript

Most Popular

PayPal Holdings (PYPL) Q1 2021 revenue up 31%; earnings beat

PayPal Holdings Inc. (NASDAQ: PYPL) reported stronger-than-expected earnings and revenues for the first quarter of 2021. Shares of the payment service provider gained during Wednesday’s extended trading session soon after

Infographic: How Twilio (TWLO) performed in Q1 2021

Twilio (NYSE: TWLO) reported first quarter 2021 earnings results today. Revenue increased 62% year-over-year to $590 million. GAAP net loss widened to $206 million, or $1.24 per share, compared to

Uber Technologies reports Q1 loss of 6 cents per share: Infographic

Uber Technologies (NYSE: UBER) reported first-quarter 2021 financial results after the regular market hours on Wednesday. The ride-hailing company reported Q1 revenue excluding the UK accrual of $3.5 billion, up


Add Comment
Viewing Highlight