- General Dynamics reported second-quarter earnings per share (EPS) of $3.74, surpassing both last year’s $3.26 and the estimate of $3.55.
- The company’s revenue grew by 8.9% year-over-year to $13.04 billion, which was higher than the expected $12.39 billion.
- Technologies segment revenue increased by 5.5% year-over-year to $3.48 billion, exceeding the forecast of $3.35 billion.
- Marine Systems saw a substantial revenue growth of 22% year-over-year, reaching $4.22 billion, beating the estimate of $3.62 billion.
- Combat Systems revenue was slightly down by 0.2% year-over-year to $2.28 billion but still came in slightly above the estimate of $2.27 billion.
- Aerospace revenue rose by 4.1% year-over-year to $3.06 billion, slightly below the expected $3.13 billion.
- The overall operating margin increased to 10% from last year’s 9.7%, exceeding the estimate of 9.99%.
- Aerospace improved its operating margin to 13.2% from 10.9% last year, beating the anticipated 12.8%.
- Marine Systems operating margin slightly decreased to 6.9% from 7.1% last year, close to the estimate of 6.81%.
- Combat Systems enhanced its operating margin to 14.2% from 13.7% last year, surpassing the expected 13.9%.
- Technologies segment saw a slight decrease in operating margin to 9.6% from 9.7% last year, but still outperformed the forecast of 9.17%.
- The current analyst ratings for General Dynamics include 11 buys, 15 holds, and 1 sell.
A look at General Dynamics Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
General Dynamics Corporation, a diversified defense company, is positioned for a positive long-term outlook based on its Smartkarma Smart Scores. With a solid score of 4 for Growth and Momentum, General Dynamics is showing promise in terms of potential expansion and market traction. Additionally, its Value and Dividend scores at 3 each indicate a reasonable valuation and dividend payout, adding to its attractiveness for investors seeking stability and returns. The company’s Resilience score of 3 reflects a moderate level of endurance against economic fluctuations, further strengthening its investment appeal.
General Dynamics Corporation’s broad portfolio of products and services in various sectors such as business aviation, combat vehicles, shipbuilding, and information systems positions it well for future growth and profitability. Investors may find General Dynamics an appealing choice, considering its balanced performance across key factors highlighted by the Smartkarma Smart Scores, showing a combination of growth potential, stability, and market momentum.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
