Aerospace and defense company General Dynamics (NYSE: GD) will be reporting results this Wednesday morning. Here’s what you need to know.
General Dynamics beat analysts’ revenue expectations last quarter, reporting revenues of $14.38 billion, up 7.8% year on year. It was a strong quarter for the company, with a solid beat of analysts’ revenue estimates and a decent beat of analysts’ adjusted operating income 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 4.1% year on year, slowing from the 13.9% 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 to 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 Q1 results, giving us a hint as to what we can expect. RTX delivered year-on-year revenue growth of 8.7%, beating analysts’ expectations by 2.7%, and CACI reported revenues up 8.5%, in line with consensus estimates. RTX traded down 7.6% following the results while CACI was up 2.8%.
Read our full analysis of RTX’s results here and CACI’s results here.
There has been positive sentiment among investors in the defense contractors segment, with share prices up 15.1% on average over the last month. General Dynamics is down 8.1% during the same time and is heading into earnings with an average analyst price target of $393.07 (compared to the current share price of $313.25).
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