Aerospace and defense company General Dynamics (NYSE: GD) will be reporting earnings this Friday before market open. Here’s what to look for.
General Dynamics beat analysts’ revenue expectations by 5.7% last quarter, reporting revenues of $13.04 billion, up 8.9% year on year. It was an exceptional quarter for the company, with an impressive beat of analysts’ backlog estimates and a solid beat of analysts’ revenue 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, analysts are expecting General Dynamics’s revenue to grow 7.3% year on year to $12.52 billion, slowing from the 10.4% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $3.72 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. General Dynamics has only missed Wall Street’s revenue estimates once over the last two years, exceeding top-line expectations by 3.4% on average.
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 11.9%, beating analysts’ expectations by 5.4%, and Lockheed Martin reported revenues up 8.8%, in line with consensus estimates. RTX traded up 10.8% following the results while Lockheed Martin was down 3.7%.
Read our full analysis of RTX’s results here and Lockheed Martin’s results here.
Investors in the defense contractors segment have had steady hands going into earnings, with share prices flat over the last month. General Dynamics is up 5.2% during the same time and is heading into earnings with an average analyst price target of $354.24 (compared to the current share price of $340).
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