General Dynamics Corporation GD reported third-quarter 2024 earnings per share (EPS) of $3.35, which missed the Zacks Consensus Estimate of $3.54 by 5.4%. However, the bottom-line increased 10.2% from $3.04 per share recorded in the year-ago quarter.

The year-over-year bottom-line appreciation can be attributed to sales growth as well as an improvement in operating earnings.

Total Revenues of GD

Revenues of $11.67 billion missed the Zacks Consensus Estimate of $11.72 billion by 0.4%. The top line however improved 10.4% from the prior-year figure.

The year-over-year improvement can be attributed to increased revenues from GD’s Aerospace, Marine Systems and Technologies, business segments.

GD’s Segmental Performance

Aerospace: The segment reported revenues of $2.48 billion, up 22.1% year over year. Operating earnings of $305 million improved 13.8% year over year.

Marine Systems: This segment’s revenues rose 19.9% to $3.60 billion from the year-ago quarter’s level. Operating earnings of $258 million increased 22.3% year over year.

Technologies: The segment’s revenues improved 2% year over year to $3.38 billion. Operating earnings totaled $326 million, which improved 3.5% year over year.

Combat Systems: The segment’s revenues of $2.21 billion were down 0.5% from the year-ago quarter’s level. However, operating earnings improved 8.3% year over year to $325 million.

Operational Highlights of GD

Operating earnings totaled $1.18 billion, up 11.7% from the year-ago quarter’s $1.06 billion.

Operating costs and expenses increased 10.3% year over year to $10.49 billion.

Interest expenses declined 3.5% year over year to $82 million.

GD’s Backlog

General Dynamics recorded a total backlog of $92.63 billion, surpassing the second-quarter level of $91.30 billion. The funded backlog at the end of the quarter was $74.95 billion.

Our model projected a backlog of $93.08 billion for the third quarter.

Financial Condition of GD

As of Sept. 29, 2024, cash and cash equivalents totaled $2.10 billion compared with $1.91 billion as of Dec. 31, 2023.

The long-term debt as of the same date was $7.26 billion, down from the 2023-end level of $8.75 billion.

During the first nine months of 2024, cash flow from operating activities totaled $1.95 billion compared with $3.51 billion in the year-ago period.

GD’s Zacks Rank

General Dynamics currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Defense Releases

Hexcel Corporation HXL reported third-quarter adjusted earnings of 47 cents per share, which improved 23.7% from the year-ago quarter’s figure of 38 cents. The bottom line also surpassed the Zacks Consensus Estimate by 2.2%.

Net sales totaled $456.5 million, which beat the consensus estimate of $456.2 million by 0.1%. The top line also witnessed an improvement of 8.8% from the year-ago quarter’s figure of $419.5 million.

RTX Corporation RTX reported third-quarter 2024 adjusted earnings per share of $1.45, which surpassed the Zacks Consensus Estimate of $1.33 by 9%. The bottom line also improved 16% from the year-ago quarter’s level of $1.25.

RTX’s sales totaled $20.09 billion, which surpassed the consensus estimate of $19.91 billion by 0.9%. The top line also surged 49.2% from $13.46 billion recorded in the third quarter of 2023.

Lockheed Martin Corporation LMT reported third-quarter adjusted earnings of $6.84 per share, which beat the Zacks Consensus Estimate of $6.47 by 5.7%. The bottom line also rose 1% from the year-ago quarter's figure of $6.77.

Net sales totaled $17.10 billion, which missed the consensus estimate of $17.28 billion by 1%. The top line, however, increased 1.3% from $16.88 billion reported in the year-ago quarter.

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