The 10-second takeaway
For the quarter ended Dec. 31 (Q4), General Dynamics missed estimates on revenues and whiffed on earnings per share.
Compared to the prior-year quarter, revenue dropped and GAAP earnings per share dropped to a loss.
Margins shrank across the board.
General Dynamics recorded revenue of $8.08 billion. The 16 analysts polled by S&P Capital IQ expected net sales of $8.81 billion on the same basis. GAAP reported sales were 12% lower than the prior-year quarter's $9.15 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 $1.39. The 18 earnings estimates compiled by S&P Capital IQ averaged $1.89 per share. GAAP EPS were -$6.07 for Q4 versus $1.68 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was -23.5%, 4,080 basis points worse than the prior-year quarter. Operating margin was -23.5%, 3,510 basis points worse than the prior-year quarter. Net margin was -26.4%, 3,300 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $7.67 billion. On the bottom line, the average EPS estimate is $1.70.
Next year's average estimate for revenue is $32.00 billion. The average EPS estimate is $7.29.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,303 members out of 1,368 rating the stock outperform, and 65 members rating it underperform. Among 372 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 357 give General Dynamics a green thumbs-up, and 15 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 $74.20.
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