General Dynamics' (NYSE:GD) net income decreased in the second quarter.
Earnings and Revenue The company's EPS beat Wall Street estimates and the company's revenues fell in line with predictions. The company reported EPS of $1.77 a share versus the $1.75 a share estimate and revenues of $7.92 billion versus the $7.93 billion estimate. The estimates of 17 analysts ranged from profit of $1.68 to profit of $1.81.
The company's net income for the quarter was $634 million. This is a 2.9% decline from last year. Revenue climbed 0.5% from $7.88 billion in the same period last year.
Company Fundamental Trends Last quarter marks the third in a row in which the company's net income has fallen. Profits declined 8.7% in the first quarter and 17.3% in the fourth quarter of the last fiscal year. The company's revenue rose last quarter after falling 2.8% to $7.58 billion in the first quarter.
History Against Expectations The company has managed to top estimates the last two quarters. In the first quarter, it beat expectations with net income of $1.70 versus a mean estimate of net income of $1.69 per share.
Official Comment: "General Dynamics' operating results in the second quarter reflect our continued focus on disciplined execution and effective cash conversion across the corporation," said Jay L. Johnson, chairman and chief executive officer. "Heading into the second half of 2012, I remain very confident in our continued ability to execute. However, given the impact of first-half award delays in IS&T's tactical communications business, as well as the likelihood of further delays in the second half, I believe it is prudent to revise the full-year earnings guidance range downward to $7.00 to $7.10 per share, fully diluted."
Estimates provided by Zacks Investment Research and company fundamentals from Xignite Financials.