RESTON, Va. - General Dynamics (NYSE:GD) reported its first-quarter 2024 financial results, revealing a slight miss on earnings per share (EPS) but exceeding revenue expectations.
The company's EPS came in at $2.88, falling short of the analyst estimate of $2.95. However, revenue for the quarter was $10.73 billion, surpassing the consensus estimate of $10.36 billion and marking an 8.6% increase from the first quarter of the previous year. The stock experienced a 1.2% decline in premarket trading following the announcement.
The aerospace and defense company also reported operating earnings of $1 billion, which is a 10.4% increase from the same quarter last year. Operating margins saw a modest expansion of 20 basis points to 9.7%.
Phebe N. Novakovic, chairman and chief executive officer, commented on the quarter's performance, "Our businesses delivered solid operating results in the quarter, growing revenue and backlog, while expanding margins, even as we awaited G700 certification." She also highlighted the recent FAA certification of the Gulfstream G700 as a positive development for the Aerospace segment.
General Dynamics' backlog increased by 4.4% to $93.7 billion compared to the year-ago quarter, with the Aerospace segment's backlog growing by 6.2%. The company's book-to-bill ratio stood at 1-to-1 for the quarter, with the Aerospace segment achieving a higher ratio of 1.2-to-1.
The company's financial health remains robust, with $1 billion in cash and equivalents at the end of the quarter. General Dynamics invested $159 million in capital expenditures, paid $361 million in dividends, and repurchased $105 million worth of shares during the quarter.
Looking ahead, General Dynamics remains confident in its outlook, with Novakovic stating, "This is a strong start to 2024 and we remain confident in our outlook." The company's focus on delivering solid operating results and growing its backlog while expanding margins is expected to continue driving performance in the upcoming quarters.
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.