General Dynamics Q2 revenue beats estimates on growth across segments

Overview

• Aerospace and defense firm's Q2 revenue rose 8.1% yr/yr, beating analyst expectations

• Diluted EPS for Q2 increased 13.4% yr/yr to $4.24

• Company reported strong order activity with a 1.4-to-1 book-to-bill ratio

Outlook

• General Dynamics says it is making significant investments to increase output for strong demand

• Company notes strong order activity and high book-to-bill ratios across all segments

• General Dynamics says it is well-positioned to support customer needs amid robust market conditions

Result Drivers

• SEGMENT GROWTH - Co said all four segments saw revenue growth, with double-digit increases and margin expansion in Aerospace and Marine Systems

• INCREASED EXECUTION - Co attributed improved results to efforts to increase execution pace and deliver on backlog

• INVESTMENTS TO BOOST OUTPUT - Co said it is making significant investments to increase output to meet strong and growing demand

Company press release: ID:nPnbgyWZja

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 14 "strong buy" or "buy", 10 "hold" and 1 "sell" or "strong sell"

• Wall Street's median 12-month price target for General Dynamics Corp is $390.00, about 0.8% below its July 28 closing price of $393.19

• The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 21 three months ago

Reuters Recommended Reads

• July 28 - Boeing share price rises despite larger-than-expected Q2 loss from higher Air Force One costs

• July 28 - Textron tops results estimates, aviation productivity concerns weigh

• July 29 - Rheinmetall posts record Q2 revenue growth, profit beats expectations

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)