General Dynamics 1Q EPS Beats, Revenue In-Line

General Dynamics Corporation

reported that its earnings from continuing operations advanced 2% to $730 million in the first quarter from $716 million in the same period last year. However, its earnings advanced 9.3% to $2.34 a share from $2.14 a share in the previous year quarter. This is higher than the Street expectations of $2.16 a share. Its net earnings were flat at $717 million. According to the company, its top line grew 2% $7.7billion in the first quarter, which was in line with the analysts' estimations. General Dynamics Chairman and CEO, Phebe Novakovic, commented, "General Dynamics delivered a strong first quarter, with all four groups contributing to our outstanding operating performance. We generated positive operating leverage and achieved the sixth straight quarter with operating earnings of more than one billion dollars." The company stated that its total backlog was $64.7 billion at the end of the March quarter. The company indicated that there was order activity in the Gulfstream product portfolio and strong demand for defense products that resulted in a book-to-bill ratio (orders divided by revenue) of one-to-one in the Combat Systems group and greater than one-to-one in the Information Systems and Technology group. General Dynamics estimated potential contract value, representing management's estimate of value in unfunded indefinite delivery, indefinite quantity (IDIQ) contracts and unexercised options, was $24.5 billion. On Tuesday, shares of the company gained 1.4%.