- General Dynamics reported 4Q earnings per share (EPS) of $4.15, exceeding the previous year’s $3.64 and surpassing estimates of $4.08.
- Quarterly revenue reached $13.34 billion, representing a 14% increase from the previous year and beating the forecasted $12.85 billion.
- The Technologies segment saw revenues grow by 2.8% year-over-year to $3.24 billion, slightly better than the projected $3.18 billion.
- Marine Systems revenue increased by 16% year-over-year, totaling $3.96 billion, surpassing expectations of $3.55 billion.
- Combat Systems generated $2.40 billion in revenue, marking a 1.3% year-over-year growth and surpassing the estimated $2.2 billion.
- Aerospace revenues rose by 36% year-over-year to $3.74 billion, though this fell short of the $3.9 billion estimate.
- The overall operating margin was 10.7%, down from the previous year’s 11% and missing the estimated 11.1%.
- Aerospace segment’s operating margin was 15.6%, down from 16.4% the previous year but above the estimated 14.7%.
- Marine Systems operating margin decreased to 5.1% from 6.4% last year, below the estimated 6.47%.
- Combat Systems operating margin was slightly up at 14.9% compared to 14.8% last year but did not meet the 15.6% forecast.
- Technologies operating margin slightly improved to 9.8% from 9.7% last year, beating the 9.55% estimate.
- Analyst ratings for General Dynamics include 13 buy recommendations, 14 holds, and 1 sell.
General Dynamics on Smartkarma
Analyst coverage of General Dynamics on Smartkarma highlights the bullish sentiment towards the company. According to a research report by Value Investors Club, General Dynamics is a global aerospace and defense firm with a diverse portfolio of businesses and a strong market presence. The company boasts solid financial performance, including $42.3 billion in revenue and $3.3 billion in net income, along with a robust balance sheet featuring $8.2 billion in net debt. The investment thesis focuses on the strength of General Dynamics‘ Gulfstream business, which has a healthy backlog of $21 billion, new product introductions, and a leading position in the business/private jet market, indicating promising investment opportunities.
A look at General Dynamics Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 3 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.0 |
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
Analysts utilising Smartkarma Smart Scores have given General Dynamics a consistent overall outlook with scores of 3 across various factors including Value, Dividend, Growth, Resilience, and Momentum. This indicates a neutral to positive sentiment towards the company’s long-term prospects. General Dynamics, a diversified defense company, maintains a stable position across these key areas, suggesting a balanced performance in terms of value, dividend yield, growth potential, resilience to market fluctuations, and momentum in stock performance. Investors may find General Dynamics to be a reliable option for long-term investment based on its overall Smart Scores evaluation.
General Dynamics Corporation, with a focus on business aviation, combat vehicles, shipbuilding, and information systems, is positioned neutrally in terms of market evaluation according to the Smartkarma Smart Scores. The scores of 3 in Value, Dividend, Growth, Resilience, and Momentum reflect the company’s diverse offerings in defense-related products and services. This consistent assessment may indicate a stable outlook for the company, making it an option worth considering for investors seeking a balanced and reliable investment in the defense sector.
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.
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