Key Takeaways
General Dynamics Corp. (NYSE: GD) reported first-quarter earnings and revenue that beat analyst estimates, sending shares up more than 5 percent in pre-market trading Wednesday.
"The quarter was a clean beat," Vertical Research Partners analyst Rob Stallard wrote in a note.
The stock rose 5.2 percent to $329.91 in premarket trading. The strong report offers a reprieve for the defense sector after recent earnings from competitors Lockheed Martin and Northrop Grumman sent their respective shares down 5 percent and 7 percent.
The maker of tanks and Gulfstream jets reported sales of $13.5 billion, up from $12.2 billion in the same period a year ago. Growth was driven by the Marine Systems division, where revenue climbed 21 percent on higher volumes of Virginia and Columbia class submarines. The Aerospace segment, which includes its business jets, saw revenue rise 10 percent.
General Dynamics ended the quarter with a total estimated contract value of $188 billion, a 33 percent increase from the prior year, signaling a robust pipeline for future business. The company did not update its full-year guidance, which in January was projected for earnings per share between $16.10 and $16.20.
The strong backlog growth suggests a durable demand cycle for the company's products. Investors will be watching for any updates to the full-year guidance during subsequent investor calls.
This article is for informational purposes only and does not constitute investment advice.
