UPDATE: General Dynamics Q2 Earnings Beats Street View, Shares Rise

General Dynamics

reported better-than-expected second-quarter earnings. The Falls Church, Virginia-based company posted a quarterly profit of $541 million, or $1.58 per share, versus a year-ago profit of $640 million, or $1.82 per share. The latest quarter results included a $105 million charge in discontinued operations for the sale of a business within Combat Systems. Excluding discontinued operations, General Dynamics' earnings from continuing operations came in at $1.88 per share. Its revenue slipped 4.6% to $7.47 billion. However, analysts were expecting earnings of $1.77 per share on revenue of $7.53 billion. Its operating margin rose to 12.7% versus 12.3%. At the end of the second quarter, General Dynamics' total backlog was $71.1 billion, versus $49.3 billion in the year-ago period and $55.9 billion at the end of the first-quarter. The company's aerospace revenue dropped 2.8% to around $2 billion, while combat systems revenue fell 0.5% to $1.47 billion. Its marine systems revenue gained 5.2% to $1.85 billion, while information systems and technology revenue tumbled 15.2% to $2.16 billion. Phebe N. Novakovic, chairman and chief executive officer said, "General Dynamics' strong second quarter performance reflects our continued focus on program execution and operational improvements." General Dynamics shares gained 1.07% to $119.82 in pre-market trading.