General Dynamics Corp Earnings: The Profit Streak Continues

S&P 500 (NYSE:SPY) component General Dynamics Corporation (NYSE:GD) reported its results for the first quarter. General Dynamics offers products and services in business aviation, combat vehicles, weapons systems and munitions as well as information systems, technologies and services.

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General Dynamics Earnings Cheat Sheet for the First Quarter

Results: Net income for the aerospace/defense fell to $564 million ($1.57 per share) vs. $618 million ($1.64 per share) a year earlier. This is a decline of 8.7% from the year-earlier quarter.

Revenue: Fell 2.8% to $7.58 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: General Dynamics Corporation fell short of the mean analyst estimate of $1.69 per share. It fell short of the average revenue estimate of $7.91 billion.

Quoting Management: “General Dynamics’ first-quarter performance reflects continued growth in our Aerospace segment as well as the challenges presented by today’s dynamic U.S. federal procurement environment. We are continuing to see slower-than-anticipated award activity, particularly relating to our IS&T programs with validated requirements and approved funding,” said Jay L. Johnson, chairman and chief executive officer. “We remain focused on effectively executing existing programs, securing work associated with delayed awards and capturing new opportunities.

Key Stats:

The company’s net income has fallen in each of the last two quarters. In the fourth quarter of the last fiscal year, net income fell 17.3% from the year-earlier quarter.

The company fell short of estimates last quarter after being in line with expectations the quarter before with net income of $2.

Revenue fell last quarter after increasing in the previous quarter. Revenue rose 6.3% to $9.15 billion in the fourth quarter of the last fiscal year from the year earlier.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the second quarter has moved down from $1.83 a share to $1.77 over the last ninety days. The average estimate for the fiscal year is $7.36 per share, down from $7.63 ninety days ago.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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