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With a market cap of $78.3 billion, General Dynamics Corporation (GD) is a global aerospace and defense company operating through four segments: Aerospace, Marine Systems, Combat Systems, and Technologies. It delivers a broad portfolio of advanced products and services, including business jets, nuclear-powered submarines, combat vehicles, weapons systems, IT solutions, and next-gen technologies, supporting both military and commercial customers worldwide.
The Reston, Virginia-based company is expected to release its fiscal Q2 2025 earnings results on Wednesday, Jul. 23. Ahead of this event, analysts project GD to report an EPS of $3.47, a 6.4% growth from $3.26 in the year-ago quarter. The company has exceeded Wall Street's bottom-line estimates in two of the last four quarters while missing on two other occasions. In Q1 2025, GD surpassed the consensus EPS estimate by 5.5%.
For fiscal 2025, analysts forecast the defense contractor to report EPS of $14.93, up 9.5% from $13.63 in fiscal 2024. Moreover, EPS is expected to grow 12.8% year-over-year to $16.84 in fiscal 2026.
Over the past 52 weeks, General Dynamics has risen 1.2%, underperforming the broader S&P 500 Index's ($SPX) over 13% return and the Industrial Select Sector SPDR Fund's (XLI) over 22% gain over the same period.
Despite reporting a better-than-expected Q1 2025 EPS of $3.66 and revenue of $12.2 billion, General Dynamics shares fell 3.3% on Apr. 23. Business jet orders declined compared to the previous quarter, raising investor worries despite a 45% revenue and 69% earnings surge in the Aerospace unit. Ongoing issues, including delays in jet engine supplies, setbacks in submarine construction due to labor shortages and design flaws, and a potential strike at the Electric Boat unit, also weighed on investor sentiment.
Analysts' consensus view on General Dynamics stock is cautiously optimistic, with an overall “Moderate Buy” rating. Among 22 analysts covering the stock, eight suggest a "Strong Buy," 13 give a "Hold," and one provides a "Strong Sell" rating. As of writing, GD is trading below the average analyst price target of $292.53.
On the date of publication, Sohini Mondal did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
