General Dynamics gains on Q3 beat; Gulfstream and marine orders drive bookings
GD•General Dynamics shares rose about 4% after third-quarter revenue of $14.57 billion and earnings per share of $4.49 beat estimates. Backlog climbed to $220.3 billion from $136.5 billion in the second quarter, driven by large Virginia- and Columbia-class submarine orders.
1. Quarterly results
General Dynamics reported third-quarter revenue of $14.57 billion, above the $13.73 billion analyst estimate, and earnings per share of $4.49, up 15.7% year over year and above the $4.13 estimate. Shares rose about 4% to $385.01 after the results.
2. Orders and cash flow
The company's backlog rose to $220.3 billion from $136.5 billion in the second quarter, driven by large Virginia- and Columbia-class submarine orders. Its company-wide book-to-bill ratio was 6.8-to-1. Marine Systems revenue increased 21.1%, while aerospace operating margin expanded to 14.5% from 13.3%. Free cash flow was $1.23 billion, down from $1.90 billion a year earlier, as capital spending more than doubled to $481 million.
