General Dynamics Tops Q2 Estimates
General Dynamics Corp, a maker of ships, tanks and business jets, reported higher-than-expected quarterly earnings and revenues on Wednesday, and sharply raised its outlook for full-year profit.
Net profit increased 16.4 percent to $752 million for the second quarter from $646 million a year earlier. Earnings per share jumped over 20 percent to $2.27 a share from $1.88 a year earlier, while revenues rose 5.5 percent to $7.88 billion from $7.47 billion.
Analysts polled by Thomson Reuters I/B/E/S estimated second-quarter earnings of $678.65 million, or $2.06 per share, on $7.68 billion in revenues.
Breaking with its past practice, the company issued a forecast of a sharp increase in full-year earnings in its press release on results, rather than wait until a conference call with analysts.
It said full-year earnings per share were expected to reach $8.70 to $8.80, up from an earlier forecast of $8.05 to $8.10.
"General Dynamics' performance was rock solid this quarter, rounding out a strong first half," said Chief Executive Officer Phebe Novakovic. She said revenues were up 6.3 percent year to date, fueled by growth in all four business segments, including defense.
General Dynamics said operating margins rose in its aerospace, combat systems and information systems businesses, but edged lower in marine systems. Companywide, operating margins rose to 13.7 percent in the quarter from 12.7 percent a year earlier.
The company repurchased 7.5 million shares in the quarter, bringing the total to 12.1 million year to date.
The stock rose 2.6 percent to $148.01 in premarket trading.
(Reporting by Andrea Shalal; Editing by Franklin Paul and Jeffrey Benkoe)