General Dynamics Earnings Cheat Sheet: Profit Rises for Third Straight Quarter

Falling revenue did not prevent S&P 500 (NYSE:SPY) component General Dynamics Corporation (NYSE:GD) from reporting a profit boost in the second quarter. General Dynamics Corp. 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 Second Quarter

Results: Net income for the aerospace/defense products and services company rose to $653 million ($1.76 per share) vs. $648 million ($1.67 per share) in the same quarter a year earlier. This marks a rise of 0.8% from the year earlier quarter.

Revenue: Fell 2.5% to $7.9 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: GD reported adjusted net income of $1.79 per share. By that measure, the company beat the mean estimate of $1.73 per share. It fell short of the average revenue estimate of $8.24 billion.

Quoting Management: “The strength of General Dynamics’ diverse portfolio and our continued commitment to disciplined execution and efficient cash conversion is evident in our operating results this quarter,” said Jay L. Johnson, chairman and chief executive officer. “Based on the company’s year-to-date results and our outlook for the second half of the year, we now expect full-year 2011 earnings from continuing operations to be $7.15 to $7.20 per share, fully diluted.”

Key Stats:

The company has now seen net income rise in three straight quarters. In the first quarter, net income rose 3.5% and in the fourth quarter of the last fiscal year, the figure rose 18.7%.

A year-over-year revenue decrease last quarter snaps a streak of four consecutive quarters of revenue increases. The best quarter in that span was the fourth quarter of the last fiscal year, which saw revenue rise 8.9%.

The company has now topped analyst estimates for the last four quarters. It beat the mark by 2 cents in the first quarter, by 6 cents in the fourth quarter of the last fiscal year, and by 5 cents in the third quarter of the last fiscal year.

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).

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(Source: Xignite Financials)