General Dynamics (NYSE:GD) topped Street expectations in its third quarter on surging demand for artillery and armored vehicles.
The Reston, Virginia-based defense contractor reported a third-quarter profit of $3.04 per share, surpassing analyst estimates of $2.91 per share.
Quarterly revenue increased by 6% to $10.57 billion, exceeding expectations of $10.05 billion, according to data from LSEG.
General Dynamics (NYSE:GD) also reported a robust book-to-bill ratio, signifying a positive comparison between orders received and units shipped and billed, at 1.4 to 1.
However, General Dynamics (NYSE:GD) faced a decline in sales in its aerospace unit, which manufactures Gulfstream business jets. Supply chain disruptions hindered the delivery of these aircraft, resulting in a 13.4% decrease in sales.
Despite delivering 27 jets in the last quarter, it fell short of the 35 jets delivered during the same period the previous year. General Dynamics has set a target of 139-140 business jet deliveries by year-end, which hinges on the certification of G700 business jets.
General Dynamics' positive performance in the third quarter aligns with better-than-expected results reported by peer defense contractors, including Lockheed Martin (NYSE:LMT) and RTX.
Earlier this week the firm reached a tentative agreement with the United Auto Workers (UAW) members for a new labor contract.
Shares of General Dynamics jumped around 4.1% on Wednesday morning at $424.45.