General Dynamics (GD) Q2 Earnings: What To Expect

Aerospace and defense company General Dynamics (NYSE:GD) will be announcing earnings results this Wednesday before market open. Here’s what you need to know.

General Dynamics beat analysts’ revenue expectations by 1.8% last quarter, reporting revenues of $12.22 billion, up 13.9% year on year. It was a mixed quarter for the company, with a solid beat of analysts’ adjusted operating income estimates but a significant miss of analysts’ backlog estimates.

Is General Dynamics a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting General Dynamics’s revenue to grow 3% year on year to $12.34 billion, slowing from the 18% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $3.54 per share.

Heading into earnings, analysts covering the company have grown increasingly bullish with revenue estimates seeing 6 upward revisions over the last 30 days (we track 18 analysts). General Dynamics has missed Wall Street’s revenue estimates twice over the last two years.

Looking at General Dynamics’s peers in the aerospace and defense segment, some have already reported their Q2 results, giving us a hint as to what we can expect. AAR delivered year-on-year revenue growth of 14.9%, beating analysts’ expectations by 8.6%, and Byrna reported revenues up 40.6%, in line with consensus estimates. AAR traded up 13.4% following the results while Byrna was down 28.8%.

Read our full analysis of AAR’s results here and Byrna’s results here.

There has been positive sentiment among investors in the aerospace and defense segment, with share prices up 5.9% on average over the last month. General Dynamics is up 5.7% during the same time and is heading into earnings with an average analyst price target of $305.31 (compared to the current share price of $298.51).

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