General Dynamics beats Q3 expectations as revenue rises over 10%

Investing.com -- General Dynamics (NYSE: GD) reported third-quarter earnings that exceeded analyst expectations, with revenue climbing 10.6% YoY to $12.9 billion compared to the consensus estimate of $12.46 billion.

The defense and aerospace contractor posted adjusted earnings per share of $3.88, beating the analyst forecast of $3.69 by $0.19.

The company’s shares edged up 1% following the announcement.

Revenue growth was particularly strong in the Aerospace segment, which saw a 30.3% increase compared to the same period last year, along with a 100 basis point margin expansion. Overall operating margin for the company improved to 10.3%, representing a 20-basis-point increase from the year-ago quarter and a 30-basis-point sequential improvement.

"Each of our four segments grew earnings and backlog in the quarter, reflecting solid execution coupled with growing demand," said Phebe Novakovic, chairman and chief executive officer. "The Aerospace segment in particular performed impressively, with order activity for business jets remaining very strong."

The company reported robust order activity with a book-to-bill ratio of 1.5-to-1 for the quarter, including 1.6-to-1 for defense segments and 1.3-to-1 for Aerospace. Total orders reached $19.3 billion, helping to build a substantial backlog of $109.9 billion.

General Dynamics generated $2.1 billion in cash from operating activities during the quarter, representing 199% of net earnings. The company ended the period with $2.5 billion in cash and equivalents and $8 billion in total debt after paying $403 million in dividends and investing $212 million in capital expenditures.

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