The 10-second takeaway
For the quarter ended April 1 (Q1), General Dynamics missed estimates on revenue and missed estimates on earnings per share.
Compared to the prior-year quarter, revenue shrank slightly and GAAP earnings per share dropped.
Margins dropped across the board.
General Dynamics notched revenue of $7.58 billion. The 16 analysts polled by S&P Capital IQ foresaw revenue of $7.91 billion on the same basis. GAAP reported sales were 2.8% lower than the prior-year quarter's $7.80 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.57. The 21 earnings estimates compiled by S&P Capital IQ predicted $1.69 per share. GAAP EPS of $1.57 for Q1 were 4.3% lower than the prior-year quarter's $1.64 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 11.3%, 710 basis points worse than the prior-year quarter. Operating margin was 11.3%, 60 basis points worse than the prior-year quarter. Net margin was 7.4%, 50 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $8.08 billion. On the bottom line, the average EPS estimate is $1.76.
Next year's average estimate for revenue is $33.05 billion. The average EPS estimate is $7.29.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,295 members out of 1,360 rating the stock outperform, and 65 members rating it underperform. Among 327 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 315 give General Dynamics a green thumbs-up, and 12 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on General Dynamics is outperform, with an average price target of $79.00.
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