General Dynamics Beats Q1 Estimates, Clocks 8% Growth In Aerospace Backlog

General Dynamics Corp GD reported first-quarter FY22 revenue of $9.4 billion, flat year-over-year, beating the consensus of $9 billion.
Sales by segments: Aerospace $1.90 billion (+0.8% Y/Y), Marine Systems $2.65 billion (+6.8% Y/Y), Combat Systems $1.68 billion (-8% Y/Y) and Technologies $3.16 billion (-1.1% Y/Y).
EPS increased by 5.2% Y/Y to $2.61, beating the consensus of $2.51.
Operating earnings decreased by 3.2% Y/Y to $908 million, and the margin contracted by 30 bps to 9.7%.
General Dynamics generated cash from operating activities in Q1 of $1.97 billion and a free cash flow of $1.83 billion.
Aerospace backlog grew $1.3 billion in the quarter to $17.6 billion, up 8.1%, driven by continued strong Gulfstream demand.
At the end of Q1, the company's total backlog was $87.2 billion, and the total estimated contract value, the sum of all backlog components, was $129 billion.
"Aerospace backlog grew for the fifth consecutive quarter, driven by continued strong Gulfstream demand while operating discipline and growth in aviation services increased the group's margins. Our defense segments delivered solid performance on key programs across the portfolios," commented chairman and CEO Phebe N. Novakovic.
Price Action: GD shares traded higher by 2.06% at $241.82 on the last check Wednesday.

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