Aerospace and defense company General Dynamics (NYSE:GD) will be reporting earnings tomorrow before market open. Here’s what you need to know.
General Dynamics missed analysts’ revenue expectations by 0.8% last quarter, reporting revenues of $11.67 billion, up 10.4% year on year. It was a softer quarter for the company, with a miss of analysts’ EBITDA 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 9.7% year on year to $12.8 billion, improving from the 7.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $4.02 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 3.7% on average.
Looking at General Dynamics’s peers in the defense contractors segment, some have already reported their Q4 results, giving us a hint as to what we can expect. CACI delivered year-on-year revenue growth of 14.5%, beating analysts’ expectations by 2.9%, and RTX reported revenues up 8.5%, topping estimates by 5.4%. CACI traded down 9.3% following the results.
Read our full analysis of CACI’s results here and RTX’s results here.
There has been positive sentiment among investors in the defense contractors segment, with share prices up 4.1% on average over the last month. General Dynamics is up 2.2% during the same time and is heading into earnings with an average analyst price target of $305.47 (compared to the current share price of $269.84).
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