General Dynamics Corporation (GD – Analyst Report) is the third-largest U.S. defense contractor after The Boeing Company and Lockheed Martin Corp. This Falls Church, VA based firm is one of the two contractors equipped to build nuclear-powered submarines. The company is well-renowned for the Virginia-class submarines and its Gulfstream aircraft.

However, the company operates in a highly competitive market. Some competitors may have extensive or specialized business segments, superior to GD. On the other hand, some customers might develop their own products and directly compete with the company for sales. The company has to keep upgrading its technology, in case it loses out to competitors developing better products.

The company does have an impressive history in earnings season. The company has reported positive earnings surprises in the last four quarters with an average beat of 8.75%.

Zacks Rank

Currently, General Dynamics has a Zacks Rank #3 (Hold), but that could definitely change following General Dynamics’ earnings report which was just released. We have mentioned below some of the vital information from this just-revealed announcement:

Earnings Beat

Our consensus called for fourth quarter EPS of $2.35, and the company reported EPS of $2.40.

Revenue Miss

General Dynamics posted revenues of $7,809 million in fourth quarter, compared to our consensus estimate of $8,229 million.

Key Developments to Note

Total backlog at the end of the fourth quarter was $66.1 billion, down 8.7% year over year.

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