General Dynamics Earnings Preview: What to Expect

Core Insights - General Dynamics Corporation (GD) is a leading U.S. aerospace and defense company with a market cap of $95.6 billion, operating in four main segments: Aerospace, Marine Systems, Combat Systems, and Technologies, providing a wide range of products and services for military and government clients globally [1] Financial Performance - Analysts anticipate GD will report a fiscal fourth-quarter earnings per share (EPS) of $4.12, slightly down from $4.15 in the same quarter last year, with the company having exceeded consensus estimates in the last four quarters [2] - For FY2025, EPS is projected to be $15.40, reflecting a 13% increase from $13.63 in FY2024, with further growth expected to $17.19 in FY2026, an 11.6% year-over-year rise [3] Stock Performance - GD shares have increased by 35.4% over the past year, outperforming the S&P 500 Index's 17.7% and the Industrial Select Sector SPDR Fund's 21.9% gains during the same period [4] Market Reactions - On January 8, GD shares rose by 3.1% following President Trump's proposal for a significant increase in the U.S. military budget for 2027, which is expected to boost government spending and contract awards in the defense sector [5] Analyst Ratings - The consensus opinion on GD stock is moderately bullish, with a "Moderate Buy" rating. Among 23 analysts, 12 recommend a "Strong Buy," 10 suggest a "Hold," and one advises a "Strong Sell." The mean price target of $379.80 indicates a potential upside of 7.3% from current market prices [6]