General Dynamics beats by $0.02, misses on revs; guides FY17 EPS in-line
- Reports Q2 (Jun) earnings of $2.45 per share, excluding non-recurring items, $0.02 better than the Capital IQ Consensus of $2.43; revenues fell 1.3% year/year to $7.67 bln vs the $7.76 bln Capital IQ Consensus.
- General Dynamics' total backlog at the end of second-quarter 2017 was $58.6 billion. There was order activity across the Gulfstream product portfolio and strong demand for defense products, including another quarter of a book-to-bill ratio (orders divided by revenue) greater than one-to-one in the Information Systems and Technology group. The estimated potential contract value, representing management's estimate of value in unfunded indefinite delivery, indefinite quantity (IDIQ) contracts and unexercised options, was $24.4 billion. Total potential contract value, the sum of all backlog components, was $83 billion at the end of the quarter.
- Co raises guidance for FY17, sees EPS of $9.70-9.75 (Prior $9.50-9.55), excluding non-recurring items, vs. $9.80 Capital IQ Consensus Estimate.
- Briefing.com Note: It is not clear if the guidance is comparable to the estimate as there appears to be one outlier of $10.74.