General Dynamics Earnings: What To Look For From GD

Aerospace and defense company General Dynamics (NYSE:GD) will be announcing earnings results tomorrow before market hours. Here’s what you need to know.

General Dynamics beat analysts’ revenue expectations by 4.1% last quarter, reporting revenues of $11.98 billion, up 18% year on year. It was a slower quarter for the company, with a miss of analysts’ backlog sales and operating margin estimates.

Is General Dynamics a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting General Dynamics’s revenue to grow 11.3% year on year to $11.76 billion, improving from the 6% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $3.51 per share.

Heading into earnings, analysts covering the company have grown increasingly bearish with revenue estimates seeing 13 downward revisions over the last 30 days (we track 20 analysts). General Dynamics has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 3.8% on average.

Looking at General Dynamics’s peers in the aerospace and defense segment, some have already reported their Q3 results, giving us a hint as to what we can expect. Byrna delivered year-on-year revenue growth of 194%, meeting analysts’ expectations, and Hexcel reported revenues up 8.8%, falling short of estimates by 1.3%. Byrna traded down 18.4% following the results.

Read our full analysis of Byrna’s results here and Hexcel’s results here.

There has been positive sentiment among investors in the aerospace and defense segment, with share prices up 2.3% on average over the last month. General Dynamics’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $328.43 (compared to the current share price of $309).

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