Aerospace and defense company General Dynamics (NYSE: GD) will be reporting earnings this Friday before the bell. Here’s what you need to know.
General Dynamics beat analysts’ revenue expectations last quarter, reporting revenues of $14.09 billion, up 8.1% year on year. It was an exceptional quarter for the company, with a beat of analysts’ EPS estimates.
Is General Dynamics a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting General Dynamics’s revenue to grow 6.6% year on year, slowing from the 10.6% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. General Dynamics rarely misses Wall Street’s revenue estimates.
Looking at General Dynamics’s peers in the defense contractors segment, some have already reported their Q3 results, giving us a hint as to what we can expect. RTX delivered year-on-year revenue growth of 11.1%, beating analysts’ expectations by 3.3%, and Parsons reported revenues up 1.8%, topping estimates by 2%. RTX’s stock price was unchanged following the results.
Read our full analysis of RTX’s results here and Parsons’s results here.
In the last twelve months or so, the market has shifted its attention from one area of macro importance to the next (AI disintermediation and AI capex spending to geopolitical conflict, rates, and whether the economy is on solid footing or not). While some of the defense contractors stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 2.6% on average over the last month. General Dynamics is up 7.8% during the same time and is heading into earnings with an average analyst price target of $406.78 (compared to the current share price of $356.62).
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