General Dynamics Gears Up For Q4 Earnings: Aerospace, Combat Systems Segments On Watch

Benzinga
01-28

General Dynamics Corp. (NYSE:GD) is set to report its fourth-quarter financial results on Wednesday before the opening bell. Here is a preview of what to expect heading into the print. 

What To Watch: Investors will be looking for updates from General Dynamics' various business segments, including Aerospace, Marine Shipbuilding, Combat Systems and Gulfstream.  

General Dynamics' Aerospace segment is expected to post solid sales, driven by the delivery of Gulfstream jets, particularly the G700 aircraft. 

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The Aerospace segment and Combat Systems segments both experienced a decline in revenues in the third quarter and their performance will be closely watched in the upcoming report. 

According to estimates from Benzinga Pro, analysts expect General Dynamics to report quarterly earnings of $4.04 per share and revenue of $12.75 billion. The company has missed the analysts’ top-line estimates in the past four consecutive quarters.  

Expert Ideas: Analysts are mixed on General Dynamics heading into its fourth-quarter report.  Several analysts have updated coverage on the defense contractor since the year began. 

  • Citigroup analyst Jason Gursky maintained a Buy rating and raised the price target from $354 to $360.
  • Baird analyst Peter Arment downgraded General Dynamics from Outperform to Neutral and lowered the price target from $345 to $283.
  • Wells Fargo analyst Matthew Akers maintained an Equal-Weight rating, but lowered the price target from $295 to $279.
  • Susquehanna maintained its Positive rating on General Dynamics shares and lowered the price target from $330 to $315.

GD Price Action: According to data from Benzinga Pro, General Dynamics shares are down 1.5% at $265.77 at the time of publication Tuesday. 

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