General Dynamics (GD) Q3 2023 Earnings Call Transcript Summary
General Dynamics Corp (GD) recently held their Q3 2023 earnings call, which revealed both positive and negative aspects of the company's performance.
Here are the specific viewpoints from the earnings call:
Bullish Points:
1. Revenue was up $596 million or 6% against the third quarter last year.
2. Sequential results are quite good across the board.
3. Net cash flow provided by operating activities was $1.32 billion and free cash flow was $1.1 billion, which is 131% of net earnings.
4. Order performance was good in the quarter in all segments and particularly strong at Gulfstream and the marine segment.
5. Aerospace book-to-bill was 1.4 to 1, and Gulfstream alone had a book-to-bill of 1.5 to 1.
6. Aerospace backlog grew from $11.6 billion at the end of 2020 to $20.1 billion at the end of the third quarter 2023.
7. Combat systems had revenue of $2.22 billion, up a stunning 24.4% over the year-ago quarter.
8. Marine systems revenue of $3 billion was up $233 million or 8.4% against the year-ago quarter.
9. Technologies revenue of $3.3 billion, which is up 8% over the prior year.
10. Strong revenue growth in the quarter.
Bearish Points:
1. Operating earnings were down $41 million or 3.7%.
2. Net earnings were down $66 million and earnings per share were down 6.7%.
3. 100 basis point contraction in operating margin.
4. Aerospace revenue was down $315 million from the year-ago quarter, driven by fewer deliveries at Gulfstream due to supply chain constraints.
5. Operating earnings were down $44 million on lower revenue and a 10 basis point contraction in margin.
6. Plan to deliver 10 to 12 fewer aircraft this year than the 145 originally forecast in the beginning of the year.
7. Margin difficulty in marine systems due to late deliveries at Electric Boat from the supply chain, which causes out-of-station work and internal scheduling disruptions.
8. Supply chain challenges in aerospace, although showing modest signs of improvement.
9. Reduced in-service aircraft production for G280s.
10. Fragile supply chain in mission systems, although the team has incorporated the new reality into their outlook.
For more information about General Dynamics Corp's earnings call, you can read the relevant news: General Dynamics (GD) Q3 2023 Earnings Call Transcript
Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.
