2 Defense Stocks Generating Trader Interest After Earnings
General Dynamics Corporation (NYSE:GD) reported its results for the fourth quarter. Net income for the aerospace/defense products and services company fell to $603 million ($1.68 per share) vs. $729 million ($1.91 per share) a year earlier. This is a decline of 17.3% from the year earlier quarter. Revenue rose 6.3% to $9.15 billion from the year earlier quarter. GD fell short of the mean analyst estimate of $2 per share. Analysts were expecting revenue of $9.29 billion.
“Jet Aviation’s aircraft-completions business continued to face lower OEM business-jet volume and delays in several narrow-body and wide-body aircraft which are nearing delivery,” said Jay L. Johnson, chairman and chief executive officer. “We have taken appropriate steps to address these issues. “The charges taken in our completions business mask an otherwise solid fourth-quarter performance by General Dynamics, marked by excellent cash generation, delivery of the first 12 Gulfstream G650 production aircraft to the final phase of manufacturing, and strong margins in our defense businesses,” Johnson continued.
Competitors to Watch: Northrop Grumman Corp. (NYSE:NOC), Raytheon Company (NYSE:RTN), The Boeing Company (NYSE:BA), Lockheed Martin Corp. (NYSE:LMT), ITT Corporation (NYSE:ITT), FLIR Systems, Inc. (NASDAQ:FLIR), Rockwell Collins, Inc. (NYSE:COL), Alliant Techsystems Inc. (NYSE:ATK), Cubic Corporation (NYSE:CUB), and Kratos Defense & Security Solutions, Inc (NASDAQ:KTOS).
United Technologies Corporation (NYSE:UTX) reported its results for the fourth quarter. Net income for United Technologies Corporation rose to $1.32 billion ($1.47 per share) vs. $1.2 billion ($1.31 per share) in the same quarter a year earlier. This marks a rise of 10.5% from the year earlier quarter. Revenue rose 0.7% to $14.97 billion from the year earlier quarter. UTX was about in line with expectations as the mean analyst estimate of $1.46 per share. Analysts were expecting revenue of $15.07 billion.
“UTC closed a solid 2011 despite tough compares in the commercial aerospace aftermarket and shorter cycle Carrier businesses and significant research and development investment in the quarter,” said Louis Chenevert, UTC Chairman & Chief Executive Officer. “For the year, all business units grew organically and achieved double digit operating margins. This performance, together with the announcements to acquire Goodrich and Rolls-Royce’s share of the IAE joint venture, positions the company for future earnings growth.” Chenevert added, “As expected, cash generation was strong in both the quarter and full year.”
Competitors to Watch: Honeywell Intl. Inc. (NYSE:HON), General Electric Company (NYSE:GE), The Boeing Company (NYSE:BA), Goodrich Corporation (NYSE:GR), Northrop Grumman Corp. (NYSE:NOC), Triumph Group, Inc. (NYSE:TGI), Esterline Tech. Corp. (NYSE:ESL) and Textron Inc. (NYSE:TXT).