Insights Ahead: General Dynamics's Quarterly Earnings

General Dynamics GD is set to give its latest quarterly earnings report on Wednesday, 2024-10-23. Here's what investors need to know before the announcement.

Analysts estimate that General Dynamics will report an earnings per share (EPS) of $3.62.

General Dynamics bulls will hope to hear the company announce they've not only beaten that estimate, but also to provide positive guidance, or forecasted growth, for the next quarter.

New investors should note that it is sometimes not an earnings beat or miss that most affects the price of a stock, but the guidance (or forecast).

Earnings Track Record

Last quarter the company missed EPS by $0.01, which was followed by a 2.22% increase in the share price the next day.

Here's a look at General Dynamics's past performance and the resulting price change:

General Dynamics Share Price Analysis

Shares of General Dynamics were trading at $308.08 as of October 21. Over the last 52-week period, shares are up 26.1%. Given that these returns are generally positive, long-term shareholders should be satisfied going into this earnings release.

Analyst Insights on General Dynamics

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on General Dynamics.

The consensus rating for General Dynamics is Outperform, derived from 10 analyst ratings. An average one-year price target of $330.1 implies a potential 7.15% upside.

Comparing Ratings with Competitors

This comparison focuses on the analyst ratings and average 1-year price targets of Northrop Grumman, L3Harris Technologies and Howmet Aerospace, three major players in the industry, shedding light on their relative performance expectations and market positioning.

• Northrop Grumman received a Neutral consensus from analysts, with an average 1-year price target of $554.73, implying a potential 80.06% upside.
• L3Harris Technologies received a Outperform consensus from analysts, with an average 1-year price target of $266.64, implying a potential 13.45% downside.
• The consensus among analysts is an Outperform trajectory for Howmet Aerospace, with an average 1-year price target of $113.0, indicating a potential 63.32% downside.

Analysis Summary for Peers

The peer analysis summary outlines pivotal metrics for Northrop Grumman, L3Harris Technologies and Howmet Aerospace, demonstrating their respective standings within the industry and offering valuable insights into their market positions and comparative performance.

Key Takeaway:

General Dynamics ranks at the top for Revenue Growth and Gross Profit among its peers. It is in the middle for Return on Equity.

Get to Know General Dynamics Better

General Dynamics is a defense contractor and business jet manufacturer. The firm's segments include aerospace, marine, combat systems, and technology. General Dynamics' aerospace segment creates Gulfstream business jets and operates a global aircraft servicing operation. Combat systems produces land-based combat vehicles such as the M1 Abrams tank and Stryker armored personnel carrier, as well as munitions. The marine segment builds and services nuclear-powered submarines, destroyers, and other ships. The technologies segment contains two main units, an IT business that primarily serves the government market and a mission systems business that focuses on products that provide command, control, computing, intelligence, surveillance, and reconnaissance capabilities to the military.

Financial Insights: General Dynamics

Market Capitalization: Boasting an elevated market capitalization, the company surpasses industry averages. This signals substantial size and strong market recognition.

Revenue Growth: General Dynamics's remarkable performance in 3 months is evident. As of 30 June, 2024, the company achieved an impressive revenue growth rate of 17.97%. This signifies a substantial increase in the company's top-line earnings. When compared to others in the Industrials sector, the company excelled with a growth rate higher than the average among peers.

Net Margin: General Dynamics's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 7.56% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): General Dynamics's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 4.17%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): General Dynamics's financial strength is reflected in its exceptional ROA, which exceeds industry averages. With a remarkable ROA of 1.64%, the company showcases efficient use of assets and strong financial health.

Debt Management: General Dynamics's debt-to-equity ratio is below the industry average at 0.5, reflecting a lower dependency on debt financing and a more conservative financial approach.

To track all earnings releases for General Dynamics visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.