General Dynamics Corporation (NYSE:GD) stock rose 0.51% (As on October 27, 11:49:03 AM UTC-4, Source: Google Finance) after the company posted better than expected results for the third quarter of FY 22. Net cash provided by operating activities in the quarter totaled $1.3 billion, or 142% of net earnings. After $255 million in capital expenditures, the company generated free cash flow of $1 billion, or 114% of net earnings. Orders remained strong across the company with a consolidated book-to-bill ratio, defined as orders divided by revenue, of 1.1-to-1 for the quarter, with particular strength in the Aerospace and Combat Systems segments. In addition to company-wide backlog of $88.8 billion, estimated potential contract value, representing management’s estimate of additional value in unfunded indefinite delivery, indefinite quantity (IDIQ) contracts and unexercised options, was $37 billion. Total estimated contract value, the sum of all backlog components, was $125.8 billion at the end of the quarter. Aerospace backlog grew in the quarter to $19.1 billion, up 1.4% sequentially and 29.7% from the year-ago quarter.

Moreover, significant awards in the quarter for the three defense segments included $1.4 billion from the U.S. Navy for construction of an additional Expeditionary Sea Base auxiliary support ship and two additional John Lewis-class (T-AO-205) fleet replenishment oilers; a contract worth up to $1.1 billion to produce Abrams main battle tanks in the system enhancement package version 3 (SEPv3) configuration for Poland; an IDIQ contract with a maximum potential value of $910 million to provide information technology infrastructure and modernization support services for the U.S. Air Forces in Europe under the Europe-Wide Information Technology and Enterprise Network program; $700 million from the Navy for maintenance and modernization work on the USS Hartford, a Los Angeles-class submarine; $370 million for various munitions and ordnance; a Navy contract with a maximum potential value of $275 million to support development, production and installation of fire control systems for the Columbia- and Dreadnought-classes of ballistic missile submarines; and $315 million for several key classified contracts.

GD in the third quarter of FY 22 has reported the adjusted earnings per share of $3.26, beating the analysts’ estimates for the adjusted earnings per share of $3.16, according to the Zacks Consensus Estimate. The company had reported the adjusted revenue growth of 4.3 percent to $9.98 billion in the third quarter of FY 22, beating the analysts’ estimates for revenue of $9.92 billion.