The 10-second takeaway
For the quarter ended June 30 (Q2), General Dynamics beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue was unchanged. GAAP earnings per share grew slightly.
Gross margins shrank, operating margins contracted, net margins increased.
General Dynamics booked revenue of $7.91 billion. The 15 analysts polled by S&P Capital IQ expected to see a top line of $7.72 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $1.81. The 20 earnings estimates compiled by S&P Capital IQ predicted $1.62 per share. GAAP EPS of $1.81 for Q2 were 2.3% higher than the prior-year quarter's $1.77 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 12.1%, 680 basis points worse than the prior-year quarter. Operating margin was 12.1%, 10 basis points worse than the prior-year quarter. Net margin was 8.1%, 10 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $7.84 billion. On the bottom line, the average EPS estimate is $1.69.
Next year's average estimate for revenue is $31.21 billion. The average EPS estimate is $6.75.
The stock has a three-star rating (out of five) at Motley Fool CAPS, with 1,273 members out of 1,344 rating the stock outperform, and 71 members rating it underperform. Among 353 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 337 give General Dynamics a green thumbs-up, and 16 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 $80.19.
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