GD Q3 Earnings Coming Up: Will Lower Interest Expenses Aid the Stock?

Core Viewpoint - General Dynamics Corporation (GD) is expected to report strong third-quarter 2024 results, driven by solid revenue growth across its business segments and lower interest expenses [1][6]. Group 1: Revenue Performance by Segment - The Aerospace unit is projected to achieve revenues of $3,055.1 million, reflecting a 50.3% increase from the previous year, bolstered by deliveries of new Gulfstream jets and increased demand for aircraft maintenance services [2]. - The Marine Systems unit's revenues are estimated at $3,438.5 million, indicating a 14.5% rise year-over-year, supported by increased sales from major submarine programs [3]. - The Technologies unit is expected to generate revenues of $3,335.6 million, a 0.7% increase from the prior year, driven by strong demand for IT services and the transition to new programs [5]. - The Combat Systems unit is likely to see revenue growth due to increased sales of wheeled combat vehicles and expanded facilities for weapons systems [4]. Group 2: Overall Financial Expectations - The overall revenue for GD in the third quarter is estimated at $11.91 billion, representing a 12.7% increase from the same quarter last year, indicating strong top-line growth prospects [6]. - The earnings per share (EPS) estimate for the third quarter is $3.61, which marks an 18.8% increase compared to the previous year [6]. Group 3: Backlog and Earnings Prediction - GD's backlog is projected to decline by 2.6% year-over-year, suggesting potential challenges in securing new contracts [5]. - The current model indicates that GD may not conclusively predict an earnings beat, with an Earnings ESP of -7.57% and a Zacks Rank of 3 [7].