(Reuters) -General Dynamics on Friday beat Wall Street estimates for third-quarter profit and revenue, driven by strong business jet deliveries as affluent customers continued to spend on high-end air travel. The Gulfstream jet maker’s adjusted profit came in at $3.88 per share for the quarter, above analysts’ estimate of $3.70 per share, according to data […]
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General Dynamics beats results estimates on strong business jet deliveries
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(Reuters) -General Dynamics on Friday beat Wall Street estimates for third-quarter profit and revenue, driven by strong business jet deliveries as affluent customers continued to spend on high-end air travel.
The Gulfstream jet maker’s adjusted profit came in at $3.88 per share for the quarter, above analysts’ estimate of $3.70 per share, according to data compiled by LSEG.
Shares of the defense major rose 1.6% before the bell.
General Dynamics’ aerospace segment continued to recover from supply chain challenges, while its certification timelines reduced, enabling it to ramp up deliveries in the quarter ended September 28.
While the company posted a rise in earnings across all segments, “the Aerospace segment in particular performed impressively,” CEO Phebe Novakovic said, noting “very strong” order activity for business jets.
The segment’s quarterly revenue rose 30% as Gulfstream aircraft deliveries jumped to 39 units in the third quarter from 28 a year ago.
Among its defense units, General Dynamics’ nuclear-powered submarine-making marine systems segment saw a nearly 14% rise in revenue.
Defense manufacturers are seeing strong demand for weapons and other equipment due to the geopolitical uncertainty and ongoing conflicts in the Middle East, with some predicting strong profits for the rest of this year.
The Reston, Virginia-based company reported a 10.6% rise in quarterly revenue to $12.91 billion which also beat Wall Street analyst estimates of $12.57 billion.
(Reporting by Aatreyee Dasgupta in Bengaluru; Editing by Leroy Leo)