General Dynamics (GD) Q2 Earnings Lag, Revenues Rise Y/Y

Core Viewpoint - General Dynamics Corporation reported second-quarter 2024 earnings per share (EPS) of $3.26, slightly missing the Zacks Consensus Estimate of $3.30 by 1.2%, but showing a year-over-year increase of 20.7% from $2.70 [1] Revenue Performance - Total revenues reached $11.98 billion, exceeding the Zacks Consensus Estimate of $11.52 billion by 3.9%, and improved 18% from the prior-year figure [2] Segmental Performance - Aerospace segment revenues were $2.94 billion, up 50.5% year over year, with operating earnings of $319 million, an increase of 35.2% [3] - Marine Systems revenues rose 12.9% to $3.45 billion, with operating earnings of $245 million, up 4.3% year over year [3] - Technologies segment revenues improved 2.5% to $3.30 billion, with operating earnings totaling $320 million, a 13.1% increase [4] - Combat Systems revenues were $2.29 billion, up 18.9% from the previous year, with operating earnings improving 24.7% to $313 million [4] Operational Highlights - Total operating earnings amounted to $1,156 million, reflecting a 20.2% increase from $962 million in the year-ago quarter [5] Cost and Expenses - Operating costs and expenses increased 17.7% year over year to $10.82 billion [6] Interest Expenses - Interest expenses declined by 5.6% to $84 million [7] Backlog - General Dynamics recorded a total backlog of $91.30 billion, down from $93.73 billion in the first quarter, with a funded backlog of $74.41 billion [8] Financial Condition - As of June 30, 2024, cash and cash equivalents totaled $1,362 million, down from $1,913 million as of December 31, 2023 [10] - Long-term debt decreased to $7,257 million from $8,754 million at the end of 2023 [11] - Cash flow from operating activities for the first half of 2024 was $536 million, compared to $2,193 million in the same period last year [11]