Free Annual Reports
General Dynamics' Third Quarter Earnings Report
Tickers in this Article »
GD
General Dynamics (NYSE:GD) announced its results for the most recent quarter on October 24, 2012. General Dynamics offers products and services in business aviation, combat vehicles, weapons systems and munitions as well as information systems, technologies and services.
Earnings are perhaps the single most studied number in a company's financial statements because they show a company's profitability. SEE: Surprising Earnings Results
The Numbers: General Dynamics posted revenues in line with analyst predictions, though the company's EPS came up short of expectations. The company reported $1.70 per share versus the $1.77 per share estimate and revenues of $7.93 billion versus the $7.93 billion estimate. EPS fell 5.6% while revenue climbed 1% from the same period last year. Revenue rose for a second quarter in a row as General Dynamics' sales grew 0.5% to $7.92 billion in the second quarter as well. The company's net income for the quarter fell 8% to $600 million. The company has now reported lower net income in each of the last four quarters.
Management Quote: "General Dynamics made notable progress on several core programs in the third quarter, including certification of the Gulfstream G650 and G280, and successful evaluations of key tactical communications systems leading to additional production awards," said Jay L. Johnson, chairman and chief executive officer. "The entire team at General Dynamics remains focused on efficient execution and maximizing profitability."
A Look Back: Net income has dropped 7.3% year-over-year on average across the last five quarters. Performance was hurt by a 17.3% decline in the fourth quarter of the last fiscal year from the year-earlier quarter.
Looking Ahead: Analysts appear increasingly negative about the company's results for the next quarter. The average estimate for the fourth quarter has moved down from $2.01 a share to $1.98 over the last 90 days. A decreasing earning estimate is a negative sign and usually leads to a drop in the stock price. The average estimate hasn't changed from $7.10 per share for the fiscal year.
Earnings are perhaps the single most studied number in a company's financial statements because they show a company's profitability. SEE: Surprising Earnings Results
The Numbers: General Dynamics posted revenues in line with analyst predictions, though the company's EPS came up short of expectations. The company reported $1.70 per share versus the $1.77 per share estimate and revenues of $7.93 billion versus the $7.93 billion estimate. EPS fell 5.6% while revenue climbed 1% from the same period last year. Revenue rose for a second quarter in a row as General Dynamics' sales grew 0.5% to $7.92 billion in the second quarter as well. The company's net income for the quarter fell 8% to $600 million. The company has now reported lower net income in each of the last four quarters.
Management Quote: "General Dynamics made notable progress on several core programs in the third quarter, including certification of the Gulfstream G650 and G280, and successful evaluations of key tactical communications systems leading to additional production awards," said Jay L. Johnson, chairman and chief executive officer. "The entire team at General Dynamics remains focused on efficient execution and maximizing profitability."
A Look Back: Net income has dropped 7.3% year-over-year on average across the last five quarters. Performance was hurt by a 17.3% decline in the fourth quarter of the last fiscal year from the year-earlier quarter.
Looking Ahead: Analysts appear increasingly negative about the company's results for the next quarter. The average estimate for the fourth quarter has moved down from $2.01 a share to $1.98 over the last 90 days. A decreasing earning estimate is a negative sign and usually leads to a drop in the stock price. The average estimate hasn't changed from $7.10 per share for the fiscal year.
by
Investopedia Staff
Investopedia.com believes that individuals can excel at managing their financial affairs. As such, we strive to provide free educational content and tools to empower individual investors, including thousands of original and objective articles and tutorials on a wide variety of financial topics.
Free Annual Reports
