General Dynamics Profit Tops Estimates on Navy Spendingby
General Dynamics Corp. reported profit that topped analysts’ estimates on higher sales for the unit that supplies vessels to the U.S. Navy.
Adjusted earnings rose to $2.34 a share, beating the $2.16 average of analyst estimates compiled by Bloomberg. Sales for the maker of Abrams tanks and nuclear submarines were33 $7.72 billion. Analysts had anticipated $7.68 billion.
Revenue for the Marine Systems division climbed 9.7 percent, the only one of the company’s five units that showed an increase. Marine Systems sales have risen as General Dynamics ramps up work on a Navy program for a new Ohio-class submarine and last year had increased production of the Virginia-class nuclear sub.
General Dynamics said there was “strong demand for defense products” during the quarter, with bookings at the Combat Systems matching revenue and surpassing revenue at the Information Systems and Technology unit.
The aerospace unit delivered 31 Gulfstream aircraft with unfinished interiors, known as green jets. That’s lower than an estimate of 35 deliveries from Peter Arment, an analyst at Sterne Agee CRT, said in an April 12 report.
The company repurchased 7.8 million shares during the quarter.