General Dynamics Posts 22% Profit Bump for 2015 as 4Q, Full-Year Earnings Exceed Street’s Outlook

general dynamics logoGeneral Dynamics (NYSE: GD) — one of 30 companies listed in Executive Mosaic’s GovCon Index — has reported an increase of around 22 percent in both earnings per share and profit for its 2015 fiscal year compared to 2014 results.

The Falls Church, Va.-based defense contractor stated $9.08 earnings per share for the full year and $2.40 for the fourth quarter compared to the $7.42 and $2.09 figures respectively reported for those periods in 2014.

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Wall Street analysts expected the company to report earnings of $9.05 per share for 2015 and $2.38 per share for the year’s October-December period.

CEO Phebe Novakovic told investors in a post-release conference call Wednesday the company plans to use nearly its entire $1.93 billion free cash flow as of the year’s end for share repurchases and dividend payments in 2016.

More details will be released in the company’s first quarter earnings call, Novakovic said.

Novakovic stated to investors that fiscal year 2016 earnings guidance is $9.20 per share with revenue of $31.8 billion at a range of 13.3 percent.

Revenue in 2015 increased 2.01 percent year-over-year to $31.47 billion and fourth quarter sales registered a 6.68 percent decline from the same period in 2014 to $7.81 billion.

Analysts looked for General Dynamics to state $31.91 billion in 2015 revenue and $8.24 billion in sales for the fourth quarter.

The company reported an operating margin of 13.3 percent for both the full year and October-December period.

Each of the company’s business segments posted fourth quarter revenue declines from the same period in 2014 with aerospace and marine systems respectively up 2.31 percent and 9.57 percent for the full year from 2014.

Sales in the information systems and technology segment fell 12.55 percent year-over-year for the quarter to $2.16 billion and 2015 revenue declined 2.18 percent to $8.96 billion from the $9.16 billion posted in 2014.

The IS&T group’s operating margin posted a 10.1-percent operating margin for the full year.

As of Tuesday’s market close, shares in General Dynamics have fallen 9.29 percent since the start of this year and are down 9.86 percent over 52 weeks.

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