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Reston, Virginia-based General Dynamics Corporation (GD), with a market cap of $76.7 billion, is a global aerospace and defense company known for advanced design, engineering, and manufacturing. The company is expected to announce its fiscal Q2 earnings results before the market opens on Wednesday, Jul. 24.
Ahead of the event, analysts expect GD to report a profit of $3.32 per share, up 23% from $2.70 per share in the year-ago quarter. The company has surpassed Wall Street's bottom-line estimates in two of the past four quarters while missing on two other occasions. It reported an EPS of $2.88 in the latest quarter, missing the consensus estimate marginally.
Nonetheless, Wall Street expects General Dynamics’ EPS to rise by 21.1% from $12.02 in fiscal 2023 to $14.56 in fiscal 2024. Looking ahead, the company’s EPS is projected to increase 11.6% in fiscal 2025 to $16.25.
GD stock has surged 31.1% over the past 52 weeks, outperforming the S&P 500 Index's ($SPX) 26.8% gains and the Financial Select Sector SPDR Fund’s (XLI) 12.2% returns over the same time frame.
The International Campaign to Abolish Nuclear Weapons (ICAN) has revealed that the world's major nuclear powers collectively spent a record $91.4 billion on their nuclear defense systems in 2023, marking a significant 13.4% increase compared to 2022. General Dynamics has leveraged this trend, gaining strong momentum in the broader market.
However, on April 24, General Dynamics stock experienced a 4% decline after reporting its Q1 earnings. The company fell short of earnings expectations for the quarter, primarily due to delays in certifying the Gulfstream G700 business jet.
Nonetheless, analysts’ consensus view on General Dynamics stock is bullish, with an overall “Strong Buy” rating. Among 20 analysts covering the stock, 15 recommend a "Strong Buy," one suggests a “Moderate Buy,” and the remaining four advise a "Hold." Over the past three months, three new “Strong Buy” recommendations have been added.
The average analyst price target for GD is $316, suggesting a potential upside of 13.1% from the current price levels.
On the date of publication, Kritika Sarmah 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.
