General Dynamics earnings top Wall Street expectations

By Mike Stone

REUTERS - General Dynamics Corp, maker of Gulfstream jets, tanks and U.S. Navy ships, reported higher-than-expected quarterly earnings on Wednesday, helped by higher sales in its combat systems unit that makes battle tanks.

The company's third-quarter 2017 results showed net earnings from continuing operations up 4.5 percent to $764 million, or $2.52 per share, up from $731 million or $2.36 per share a year ago.

Wall Street analysts expected $2.44 per share, according to Thomson Reuters I/B/E/S.

However, General Dynamics reported $7.6 billion in quarterly revenue, a 1-percent drop from last year, missing Wall Street analyst estimates of $7.94 billion.

 

The Falls Church Virginia-based defense contractor said its total order backlog at end of third-quarter 2017 was $63.9 billion, up 9.2 percent from the end of the previous quarter.​

The company-wide operating margin for the third quarter was 13.9 percent, a 60 basis-point increase. General Dynamics had also improved operating margins by 60 basis points during the second quarter.

(Reporting by Mike Stone in Washington, DC; Editing by Nick Zieminski)