Core Insights - General Dynamics reported revenue of $13.34 billion for Q4 2024, a year-over-year increase of 14.3% and a surprise of +2.10% over the Zacks Consensus Estimate of $13.06 billion [1] - The EPS for the quarter was $4.15, compared to $3.64 a year ago, with an EPS surprise of +0.48% over the consensus estimate of $4.13 [1] Revenue Performance by Segment - Technologies revenue was $3.24 billion, exceeding the six-analyst average estimate of $3.17 billion, with a year-over-year change of +2.8% [4] - Marine Systems revenue reached $3.96 billion, surpassing the six-analyst average estimate of $3.56 billion, reflecting a year-over-year increase of +16.2% [4] - Combat Systems revenue was $2.40 billion, above the estimated $2.19 billion, showing a +1.3% change compared to the previous year [4] - Aerospace revenue was $3.74 billion, below the average estimate of $4.20 billion, but still represented a significant year-over-year change of +36.4% [4] Operating Earnings Analysis - Aerospace operating earnings were $585 million, slightly below the estimated $590.39 million [4] - Combat Systems operating earnings were $356 million, exceeding the average estimate of $339.99 million [4] - Technologies operating earnings were $319 million, compared to the average estimate of $304.78 million [4] - Marine Systems operating earnings were $200 million, below the average estimate of $233.51 million [4] - Corporate operating earnings were -$37 million, better than the estimated -$40.54 million [4] Stock Performance - General Dynamics shares returned -0.4% over the past month, while the Zacks S&P 500 composite increased by +1.7% [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Viewpoint - General Dynamics reported quarterly earnings of $4.15 per share, exceeding the Zacks Consensus Estimate of $4.13 per share, and showing an increase from $3.64 per share a year ago, indicating a positive earnings surprise of 0.48% [1] Financial Performance - The company achieved revenues of $13.34 billion for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 2.10%, and up from $11.67 billion year-over-year [2] - Over the last four quarters, General Dynamics has exceeded consensus revenue estimates three times [2] Stock Performance and Outlook - General Dynamics shares have declined approximately 0.4% year-to-date, contrasting with the S&P 500's increase of 3.2% [3] - The company's future stock performance will largely depend on management's commentary during the earnings call and the earnings outlook [4][6] Earnings Estimates - The current consensus EPS estimate for the upcoming quarter is $3.35 on revenues of $11.46 billion, and for the current fiscal year, it is $15.92 on revenues of $50.26 billion [7] Industry Context - The Aerospace - Defense industry, to which General Dynamics belongs, is currently ranked in the bottom 40% of over 250 Zacks industries, which may impact stock performance [8]

Financial Performance - Fourth-quarter net earnings were $1.1 billion, a 14.2% increase year-over-year, with revenue of $13.3 billion, up 14.3% from the previous year[1][2] - For the full year, net earnings reached $3.8 billion, up 14.1% from 2023, on revenue of $47.7 billion, which is a 12.9% increase[2][4] - The diluted earnings per share (EPS) for the fourth quarter was $4.15, a 14% increase, while the full-year diluted EPS was $13.63, up 13.4%[1][2] - Net earnings for 2024 reached $3,782 million, a 14.05% increase compared to $3,315 million in 2023[30] - Total revenue for 2024 was $11.249 billion, compared to $8.621 billion in 2023, reflecting a significant year-over-year growth[54] Backlog and Contracts - The company ended the year with a backlog of $90.6 billion, with a total estimated contract value of $144 billion, reflecting a 9.1% increase from the previous year[5][6] - The company’s total backlog reached $90,597 million in the fourth quarter of 2024, compared to $93,627 million in the fourth quarter of 2023, a decrease of 3.36%[39] - Significant contract awards in the defense segments included a U.S. Air Force contract valued at $5.6 billion and a U.S. Space Force contract worth $2.2 billion[7] - The company secured a contract with the U.S. Air Force with a maximum potential value of $5.6 billion for modernizing and integrating Mission Partner Environments[52] - A contract from the U.S. Space Force has a maximum potential value of $2.2 billion for sustainment services for the Mobile User Objective System[52] - The company reported $305 million for several key contracts for classified customers, with a maximum potential value of $1.4 billion[52] - The company received $115 million from the Department of Veteran Affairs for digitizing historical veteran records, with a maximum potential value of $345 million[52] Cash Flow and Investments - Net cash provided by operating activities for the fourth quarter was $2.2 billion, representing 188% of net earnings, while for the full year, it totaled $4.1 billion, or 109% of net earnings[4][5] - The company invested $916 million in capital expenditures and returned $3 billion to shareholders through dividends and share repurchases during the year[4][5] - Free cash flow for 2024 was $3,196 million, down from $3,806 million in 2023, reflecting a decrease of 16.06%[34] - Capital expenditures for 2024 were $916 million, slightly higher than $904 million in 2023, reflecting a 1.32% increase[30] Operational Metrics - The consolidated book-to-bill ratio was 0.9-to-1 for the quarter and 1-to-1 for the year, indicating strong order activity[5][6] - The aerospace book-to-bill ratio was 1.0x in Q4 2024, down from 1.2x in Q4 2023, indicating a decrease in order intake relative to revenue[54] - Gulfstream Aircraft deliveries totaled 47 units in Q4 2024, up from 39 units in Q4 2023, with large-cabin aircraft deliveries increasing from 32 to 42 units[54] - The company delivered 136 aircraft in the twelve months of 2024, compared to 111 in the previous year, showing a 22.5% increase[54] Financial Ratios and Equity - The operating margin for the total company was 10.1% for the full year, slightly up from 10.0% in the previous year[22] - The debt-to-equity ratio improved to 39.7% in 2024 from 43.5% in 2023, indicating a stronger equity position[33] - Book value per share increased to $81.61 in 2024, up from $77.85 in 2023, marking a growth of 4.48%[33] - Return on equity improved to 17.2% in 2024, compared to 16.8% in 2023, indicating enhanced profitability relative to equity[33] Shareholder Returns - The company paid dividends totaling $1,529 million in 2024, an increase from $1,428 million in 2023, representing a growth of 7.07%[30]

Group 1: Lockheed Martin Corp (LMT) - Lockheed Martin stock has gained over 14% in the last 12 months but has declined nearly 20% from its record high of $618.95 on October 21, currently trading at $496.22, with the $500 level acting as a potential pivot point [2] - The company secured a $270 million contract with the Air Force for integrating infrared sensors into F-22 Raptors, and is set to report fourth-quarter earnings on January 28 [3] Group 2: RTX Corp (RTX) - RTX shares are currently trading at $126.19, up 1.5%, and are close to their record high of $128.70 from October 22, with a year-over-year gain of 41% [4] - Citigroup upgraded RTX to "buy" from "neutral" and raised its price target to $154 from $132, indicating potential for further upgrades as 12 of 23 analysts maintain "hold" ratings, with a consensus 12-month price target of $133.13 [5] Group 3: General Dynamics Corp (GD) - General Dynamics stock is down 15.6% from its record high of $316.90 on November 13, currently trading at $267.32, and is facing pressure at its declining 50-day moving average [6]

Group 1: Company Performance - General Dynamics (GD) stock closed at $261.47, with a +0.7% movement compared to the previous day, outperforming the S&P 500 which gained 0.16% [1] - The stock has fallen by 1.49% in the past month, while the Aerospace sector lost 3.38% and the S&P 500 lost 2.7% [1] - Upcoming earnings disclosure is anticipated to report an EPS of $4.29, marking a 17.86% rise year-over-year, with revenue expected at $13.35 billion, indicating a 14.39% increase [2] Group 2: Analyst Estimates and Valuation - Recent changes to analyst estimates for General Dynamics indicate the evolving nature of near-term business trends, with positive revisions reflecting analysts' confidence [3] - The Zacks Rank system, which assesses estimate changes, currently ranks General Dynamics at 4 (Sell), with a 0.51% fall in the Zacks Consensus EPS estimate over the past month [5] - General Dynamics has a Forward P/E ratio of 16.38, which is a discount compared to the industry's average Forward P/E of 17.57 [6] Group 3: Industry Context - The Aerospace - Defense industry, which includes General Dynamics, has a PEG ratio of 1.39, matching the industry average [7] - The Aerospace - Defense industry holds a Zacks Industry Rank of 174, placing it in the bottom 31% of over 250 industries [7] - The Zacks Industry Rank indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [8]

General Dynamics (GD) closed the most recent trading day at $265.90, moving +0.27% from the previous trading session. This move lagged the S&P 500's daily gain of 1.1%. Meanwhile, the Dow gained 0.91%, and the Nasdaq, a tech-heavy index, added 1.35%.Shares of the defense contractor witnessed a loss of 5.74% over the previous month, trailing the performance of the Aerospace sector with its loss of 4.17% and the S&P 500's gain of 0.22%.Market participants will be closely following the financial results of Gen ...

Company will implement innovative Mission Partner Environment to securely share information with global mission partnersFALLS CHURCH, Va., Dec. 20, 2024 /PRNewswire/ -- General Dynamics Information Technology (GDIT), a business unit of General Dynamics (NYSE:GD), announced today it was awarded a new $5.6 billion contract by the Air Force Mission Partner Capabilities Office. The single award, indefinite-delivery indefinite-quantity contract, awarded in November, has a five-year base period and a five-year op ...

Investors in General Dynamics Corporation (GD) need to pay close attention to the stock based on moves in the options market lately. That is because the Jan 17, 2025 $105 Call had some of the highest implied volatility of all equity options today.What is Implied Volatility?Implied volatility shows how much movement the market is expecting in the future. Options with high levels of implied volatility suggest that investors in the underlying stocks are expecting a big move in one direction or the other. It co ...

General Dynamics (GD) closed the most recent trading day at $265.43, moving -1.85% from the previous trading session. The stock's change was less than the S&P 500's daily gain of 0.82%. At the same time, the Dow lost 0.22%, and the tech-heavy Nasdaq gained 1.77%.Heading into today, shares of the defense contractor had lost 13.34% over the past month, lagging the Aerospace sector's loss of 4.4% and the S&P 500's gain of 0.8% in that time.Analysts and investors alike will be keeping a close eye on the perform ...

Shares of aerospace and defense firm General Dynamics Corp (NYSE:GD) were last seen trading at $276.84. Two-straight monthly losses has amounted to a quarterly deficit of 8.2%, aided in large part by a Nov. 14 6.9% gap lower in the wake of President-elect Donald Trump's proposed Department of Government Efficiency appointments. The good news is that this drawdown presents a unique buying opportunity, if past is precedent.GD is within one standard deviation of its 320-day moving average. For the purpose of t ...