General Dynamics Earnings: Here’s Why Investors are Excited Now

General Dynamics Corp. (NYSE:GD) delivered a profit and beat Wall Street’s expectations, BUT came up short on beating the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 3.59%.

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General Dynamics Corp. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 3.18% to $1.62 in the quarter versus EPS of $1.57 in the year-earlier quarter.

Revenue: Decreased 2.31% to $7.4 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: General Dynamics Corp. reported adjusted EPS income of $1.62 per share. By that measure, the company beat the mean analyst estimate of $1.5. It missed the average revenue estimate of $7.55 billion.

Quoting Management: “General Dynamics’ first-quarter performance reflects our continued focus on operations, cost improvement and cash generation, as well as our commitment to meeting our customers’ requirements,” said Phebe N. Novakovic, chairman and chief executive officer. “This is a strong start toward achieving our objectives for the year.”

Key Stats (on next page)…

Revenue decreased 8.34% from $8.08 billion in the previous quarter. EPS increased 16.55% from $1.39 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.67 to a profit $1.63. For the current year, the average estimate has moved down from a profit of $6.95 to a profit of $6.67 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)