General Dynamics Third Quarter Results Top Estimates

(RTTNews) - Defense contractor General Dynamics Corp.(GD) reported Wednesday a profit for the third quarter that increased seven percent from last year, reflecting improved margins and revenue growth. Both earnings per share from continuing operations and quarterly revenues topped analysts' expectations.

"General Dynamics had a very strong quarter, evident in our operating earnings, operating margins at 12.9 percent and solid cash performance," Chairman and CEO Phebe Novakovic noted.

Falls Church, Virginia-based General Dynamics reported net earnings of $696 million or $2.06 per share for the third quarter, higher than $651 million or $1.84 per share in the prior-year quarter.

Earnings from continuing operations for the quarter grew to $694 million or $2.05 per share from $652 million or $1.84 per share in the year-ago quarter.

On average, 20 analysts polled by Thomson Reuters expected the company to report earnings of $1.91 per share for the quarter. Analysts' estimates typically exclude special items.

Revenues for the quarter edged up 0.2 percent to $7.751 billion from $7.735 billion in the same quarter last year, and topped seventeen Wall Street analysts' consensus estimate of $7.58 billion.

Aerospace revenues increased 6.4 percent to $2.29 billion, combat systems revenues improved 6.8 percent to $1.40 billion, and marine systems revenue increased 7.2 percent to $1.82 billion from a year ago. Meanwhile, information systems and technology revenues declined 12.9 percent to $2.25 billion from last year.

Company-wide operating margins improved 50 basis points to 12.9 percent from last year's 12.4 percent.

At the end of third-quarter 2014, total backlog was $74.4 billion, up 56 percent from the year-ago quarter, and total potential contract value, the sum of all backlog components, stood at $101.1 billion.

"With a continued focus on operating performance and the company's significant increase in backlog throughout 2014, we are well-positioned for the opportunities ahead," Novakovic added.

GD closed Tuesday's regular trading session at $123.89, up $2.70 on a volume of 1.78 million shares. In the past 52-week period, the stock has been trading in a range of $85.79 to $130.17.