General Dynamics Corp. (
GD), which is trading near a 52-week high, posted stellar second-quarter results in late July. Revenue was up 10.8% from last year to $7.3 billion. Earnings per share of $1.60 topped the consensus estimate by 12% and improved on the year-prior $1.27. In early August, the company declared a regular quarterly dividend of 35 cents per share.
Company Description
General Dynamics provides business aviation; land and expeditionary combat vehicles and systems, armaments, and munitions; shipbuilding and marine systems; and mission-critical information systems and technologies.
The company operates in four main business segments. Aerospace designs, develops, manufacturers and services a comprehensive offering of advanced business-jet aircraft. Combat Systems is a global leader in producing, supporting and sustaining land and expeditionary combat systems for the U.S. military and its allies. Marine Systems designs, builds and supports submarines and a variety of surface ships for the U.S. Navy and commercial customers. The Information Systems and Technology group offers a breadth and depth of technology and service capabilities that support a wide range of government and commercial needs, including systems integration expertise; hardware and software products; and engineering, management and support services.
A Recent Contract
The company?s most recent contract win was a $41 million contract modification from the U.S. Marine Corps System Command for the production of nine capability set II Combat Operations Centers and 18 common modules.
Income
In early August, the company declared a regular quarterly dividend of 35 cents per share. GD noted that the dividend is payable November 14 to shareholders of record on October 10.
Quarterly Results Reflect Growth
General Dynamics posted stellar second-quarter results in late July. Revenue was up 10.8% from last year to $7.3 billion. Earnings per share of $1.60 topped the consensus estimate by 12% and improved on the year-prior $1.27.
'General Dynamics' performance continued to be strong in the second quarter of 2008,? said Nicholas D. Chabraja, chairman and chief executive officer. "Sales, earnings and operating margins increased in all four business segments compared to the year-ago period, cash generation was exceptionally strong and the robust backlog suggests continued healthy demand for the products and services of each business area."
More Growth Forecasted for the Future
Wall Street is upbeat on the company's future. Full-year earnings estimates of $6.08 per share climbed from $5.89 over the past 60 trading days. For the 2009 year, forecasts were bumped up by a penny to $6.71 per share over the past week. Two months ago, 2009 projections were $6.52.
