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With a market cap of $66.5 billion, General Dynamics Corporation (GD) operates as an aerospace and defense company worldwide. Founded in 1899, the Reston, Virginia-based company operates through four segments: Aerospace, Marine Systems, Combat Systems, and Technologies. The company is expected to announce its fiscal Q1 earnings results on Wednesday, Apr. 23, before the market opens.
Ahead of this event, analysts project the company to report a profit of $3.43 per share, up 19.1% from $2.88 per share in the year-ago quarter. The company has failed to beat Wall Street's EPS estimates in three of the last four quarters, surpassing estimates in only one quarter. In the fourth quarter, GD reported EPS of $4.15, surpassing consensus estimates marginally.
For fiscal 2025, analysts expect GD to report an EPS of $14.83 per share, up 8.8% from $13.63 in fiscal 2024. Moreover, its EPS is expected to increase 15.6% year-over-year to $17.14 per share in fiscal 2026.
Over the past year, GD shares have declined 13.2%, compared to the S&P 500 Index’s ($SPX) 4.2% fall and the Industrial Select Sector SPDR Fund’s (XLI) 7.2% decline over the same time frame.
GD stock closed up more than 2% on Apr. 7, buoyed by escalating U.S.-China trade tensions. President Trump's proposal to hike tariffs on Chinese goods by an additional 50%, raising total tariffs to 104% if China maintains its 34% duties on U.S. products, has rattled global markets. While broader equities have pulled back amid the uncertainty, defense stocks like GD have gained as geopolitical friction fuels investor interest in the sector.
Analysts' consensus view on GD’s stock is moderately bullish, with a "Moderate Buy" rating overall. Among 22 analysts covering the stock, eight recommend a "Strong Buy," one recommends a “Moderate Buy,” 12 indicate a “Hold” rating, and one indicates a “Strong Sell” rating.
Its average analyst price target of $293.21 indicates a premium of 15.3% from the current market prices.
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.
