General Dynamics Corp Earnings Cheat Sheet: Profit Increases Again

Falling revenue did not prevent S&P 500 (NYSE:SPY) component General Dynamics Corporation (NYSE:GD) from reporting a profit boost in the third quarter. General Dynamics offers products and services in business aviation, combat vehicles, weapons systems and munitions as well as information systems, technologies and services.

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

General Dynamics Earnings Cheat Sheet for the Third Quarter

Results: Net income for the aerospace/defense products and services company rose to $652 million ($1.81 per share) vs. $650 million ($1.70 per share) in the same quarter a year earlier. This marks a rise of 0.3% from the year earlier quarter.

Revenue: Fell 2% to $7.85 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: GD beat the mean analyst estimate of $1.77 per share. It fell short of the average revenue estimate of $8.31 billion.

Quoting Management: “General Dynamics continued to execute effectively in the third quarter,” said Jay L. Johnson, chairman and chief executive officer. “This solid operating performance reflects our ongoing focus on increasing efficiency, improving productivity and driving cost out of our businesses. Importantly, order activity in the quarter underscored the enduring nature of customer demand for our products and services.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the second quarter, net income rose 0.8% and in the first quarter, the figure rose 3.5%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 6 cents in the second quarter, by 2 cents in the first quarter, and by 6 cents in the fourth quarter of the last fiscal year.

Revenue has fallen in the past two quarters. In the second quarter, revenue declined 2.8% to $7.88 billion from the year earlier quarter.

Looking Forward: For next quarter, analysts have a more positive outlook about the company’s expected results. The average estimate for the fourth quarter is $2.02 per share, up from $2 ninety days ago. For the fiscal year, the average estimate has moved up from $7.13 a share to $7.20 over the last ninety days.

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).

Investing Insights: Here’s Why Chipotle’s Stock Keeps Winning.

(Source: Xignite Financials)