Oct 30 (Reuters) – General Dynamics on Friday beat Wall Street expectations for third-quarter profit and revenue on strong bookings in its Gulfstream business jet and shipbuilding units, sending the defense contractor’s shares up about 4% before the bell.
The company recorded another strong quarter on higher Gulfstream jet deliveries, improving aerospace margins and steady progress on submarine production and robust bookings.
Total bookings during the quarter were 6.8 times billings, underscoring strong demand for the company’s defense and aerospace products.
General Dynamics said in July that supply-chain challenges were easing across its Gulfstream and Marine businesses, allowing it to ramp up production and reduce backlogs.
Quarterly Gulfstream aircraft deliveries rose to 40 aircraft from last year’s 39.
The company is benefiting from strong demand for premium business jets, with aerospace orders reaching $5 billion in the quarter, while rising US and European defense spending continues to bolster procurement and modernization programs across its defense businesses.
General Dynamics entered the quarter with a sizable backlog spanning Gulfstream business jets and long-cycle naval programs such as the Columbia- and Virginia-class submarines.
For the quarter ended October 4, total estimated contract value climbed to $270.7 billion from $186.9 billion three months earlier, as major submarine awards helped lift the backlog to a record $220.3 billion from $136.5 billion.
Third-quarter profit of $4.49 per share came above analysts’ average estimate of $4.13, according to data compiled by LSEG.
Total revenue rose nearly 13% from a year ago to $14.57 billion, compared with estimates of $13.73 billion.
(Reporting by Aatreyee Dasgupta in Bengaluru; Editing by Mrigank Dhaniwala and Shinjini Ganguli)
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