Stock Story -
Aerospace and defense company General Dynamics (NYSE:GD) will be announcing earnings results tomorrow morning. Here's what to look for.
General Dynamics beat analysts' revenue expectations by 4.2% last quarter, reporting revenues of $10.73 billion, up 8.6% year on year. It was a mixed quarter for the company, with a miss of analysts' backlog sales estimates.
Is General Dynamics a buy or sell going into earnings? Find out by reading the original article on StockStory, it's free.
This quarter, analysts are expecting General Dynamics's revenue to grow 13.3% year on year to $11.5 billion, improving from the 10.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $3.31 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. General Dynamics has only missed Wall Street's revenue estimates once over the last two years, exceeding top-line expectations by 3% on average.
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. Hexcel delivered year-on-year revenue growth of 10.1%, beating analysts' expectations by 3%, and AAR reported revenues up 18.7%, in line with consensus estimates. Hexcel traded down 7.5% following the results while AAR was also down 12.1%.
Read the full analysis of Hexcel's and AAR's results on StockStory.
There has been positive sentiment among investors in the aerospace and defense segment, with share prices up 6.5% on average over the last month. General Dynamics is down 2.5% during the same time and is heading into earnings with an average analyst price target of $317.5 (compared to the current share price of $291.2).
![General Dynamics (GD) Reports Q2: Everything You Need To Know Ahead Of Earnings](https://d68-invdn-com.investing.com/content/picfe0fc57c7af70a38c5a419d83ec2c5e7.jpeg)