Earnings Review and Free Research Report: General Dynamics’ EPS Grew 6.5%; Met Expectations

Research Desk Line-up: Woodward Post Earnings Coverage

LONDON, UK / ACCESSWIRE / August 4, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on General Dynamics Corp. (NYSE: GD), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=GD, following the Company’s release of its second quarter fiscal 2017 results on July 25, 2017. The defense contractor reported a slight decline in revenue while it increased its earnings forecasts for the year. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member’s account at:

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Get more of our free earnings reports coverage from other constituents of the Aerospace/Defense Products & Services industry. Pro-TD has currently selected Woodward, Inc. (NASDAQ: WWD) for due-diligence and potential coverage as the Company reported on July 24, 2017, its financial results for Q3 FY17 which ended on June 30, 2017. Register for a free membership today, and be among the early birds that get access to our report on Woodward when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on GD; also brushing on WWD. With the links below you can directly download the report of your stock of interest free of charge at:

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Earnings Reviewed

For the three months ended July 02, 2017, General Dynamics reported revenue of $7.68 billion, down 1.3% compared to revenue of $7.77 billion in Q2 2016. The Company’s revenue fell short of Wall Street’s estimates of $7.8 billion.

For Q2 2017, General Dynamics’ company-wide operating margin was 13.8%, a 60 basis-point increase when compared to operating margin of 13.2% in Q2 2016, with three of the Company’s four business groups expanding margins on a y-o-y basis. General Dynamics’ net interest expense in the quarter was $24 million versus $23 million in Q2 2016.

General Dynamics posted Q2 2017 net income of $749 million compared to net earnings of $714 million in Q2 2016. The Falls Church, Virginia-based Company reported income of $2.45 per share compared to $2.30 in the prior year’s same quarter, reflecting a 6.5% increase. General Dynamics’ earnings results met analysts’ estimates of $2.45 per share.

Segment Results

During Q2 2017, General Dynamics’ Aerospace segment’s revenue totaled $2.08 billion, down 9% compared to revenue of $2.28 billion in Q2 2016. The segment’s operating earnings were $425 million, up 0.2% from $424 million in the prior year’s comparable quarter. General Dynamics’ Marine Group segment’s revenue came in at $2.08 billion, up 5.1% compared to revenue of $1.98 billion in Q2 2016. The segment reported operating earnings of $178 million in the reported quarter, up 3.5% from $172 million in the year earlier same quarter.

General Dynamics’ Combat Systems segment’s revenue grew 9% to $1.41 billion in Q2 2017 from $1.30 billion in Q2 2016. The segment’s operating earnings totaled $225 million, growing 9.8% on a y-o-y basis. The Company’s Information Systems and Technology segment recorded revenue of $2.10 billion, down 5% compared to revenue of $2.22 billion in the prior year’s corresponding quarter. The segment reported operating earnings of $240 million, up 2.6% on a y-o-y basis.

Backlog

General Dynamics’ total backlog at the end of Q2 2017 was $58.6 billion. The Company recorded order activity across the Gulfstream product portfolio and strong demand for defense products, including another quarter of a book-to-bill ratio greater than one-to-one in the Information Systems and Technology segment. The estimated potential contract value, representing management’s estimates of value in unfunded indefinite delivery, indefinite quantity (IDIQ) contracts, and unexercised options, was $24.4 billion. General Dynamics’ total potential contract value, the sum of all backlog components, was $83 billion at the end of the reported quarter.

Cash

General Dynamics’ net cash provided by operating activities in Q2 2017 totaled $477 million, up 21% on a y-o-y basis. The Company’s free cash flow from operations, defined as net cash provided by operating activities less capital expenditures, was $386 million for the reported quarter. At the end of Q2 2017, the Company had a cash balance of $1.9 billion and a net debt position of $2.1 billion.

During Q2 2017, General Dynamics repurchased 2.7 million of its outstanding shares in the second quarter. On a year-to-date, the Company has repurchased 4.6 million outstanding shares.

Outlook

General Dynamics increased its FY17 earnings forecasts to be in the range of $9.70 – $9.75 per share from the earlier guidance range of $9.50 – $9.55 per share.

Stock Performance

On Thursday, August 03, 2017, the stock closed the trading session at $199.33, rising slightly by 0.65% from its previous closing price of $198.04. A total volume of 1.07 million shares have exchanged hands. General Dynamics’ stock price soared 2.46% in the last three months, 10.52% in the past six months, and 34.86% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have surged 15.45%. The stock is trading at a PE ratio of 19.87 and has a dividend yield of 1.69%. At Thursday’s closing price, the stock’s net capitalization stands at $58.46 billion.

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