Defence contractor General Dynamics Corporation (NYSE:GD) reported its second quarter results, which missed and revised lower its guidance for the full year.
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Earnings were down 4.8% to $634 million, equivalent to $1.77 a share compared to $666 million, or $1.79 a share in the year ago period. Analysts expected $1.73 a share. Revenues were up 0.5% to $7.9 billion, while expectations were $7.93 billion.
The company also lowered its guidance for the full year earnings, to the range of $7.00 to $7.10 on a fully diluted basis.
Chief Executive, Jay Johnson, said there was continued budgetary uncertainty about defense spending, but the company was focussing on “executing its contracts, cutting costs, and consolidating facilities, primarily in Europe, and safeguarding its capital”.
Northrop Grumman Corp.
Northrop’s Grumman Corporation (NYSE:NOC) revenues in the second quarter fell by nearly $300 million to $6.3 billion from $6.6 billion last year. Earnings dropped to $480 million against $520 million. Yet earnings per share rose to $1.88 a share compared to $1.81 last year.
Sales were down due to the end of certain programs, such as the F-22, Joint Tactical Radio System Airborne, Maritime and Fixed program, sale of the San Diego County outsourcing contract, and others.
However, the company is quite optimistic. “Our businesses continue to perform well, and we continue to create value through a combination of performance and effective cash deployment. We’re especially pleased with this quarter’s robust level of new business capture, the increase in total backlog, and our strong cash generation. Based on the strength of our year-to-date results, we are again increasing our earnings guidance to a range of $7.05 to $7.25 per share,” said Wes Bush, chairman, chief executive officer, and president.
Motorola Solutions Inc.
Communications equipment maker, Motorola Solutions Inc issued a profit miss for its second quarter, and provided muted guidance for third quarter revenues that were below analysts’ expectations.
Revenues in the second quarter were up 8 % to $2.14 billion and earnings fell to $182 million, or 61 cents a share, compared to $349 million, or $1 a share a year earlier. Analysts had expected earnings of 69 cents on revenues of $2.11 billion.
The forecast for the current quarter, is a growth in revenues of 3%, which equates to about $2.15 billion, slightly off expectations of $2.20 billion. The company has been seeing good demand for its communications products from governments across the globe.