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It's Showtime for General Dynamics

By Seth Jayson – Updated Apr 10, 2017 at 1:48PM

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Checking expectations

General Dynamics (NYSE: GD) is expected to report Q1 earnings on April 24. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict General Dynamics's revenues will drop -0.5% and EPS will wither -4.5%.

The average estimate for revenue is $7.54 billion. On the bottom line, the average EPS estimate is $1.50.

Revenue details
Last quarter, General Dynamics booked revenue of $8.08 billion. 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 details
Last quarter, non-GAAP EPS came in at $1.39. GAAP EPS were -$6.07 for Q4 against $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.

Recent performance
For the preceding quarter, gross margin was 12.2%, 390 basis points worse than the prior-year quarter. Operating margin was 4.7%, 570 basis points worse than the prior-year quarter. Net margin was -26.4%, much worse than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $31.47 billion. The average EPS estimate is $6.68.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,287 members out of 1,352 rating the stock outperform, and 65 members rating it underperform. Among 353 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 334 give General Dynamics a green thumbs-up, and 19 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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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of General Dynamics. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Stocks Mentioned

General Dynamics Stock Quote
General Dynamics
$255.74 (1.38%) $3.47

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

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