General Dynamics Corporation (NYSE:GD) Earnings Preview

• General Dynamics is expected to report an EPS of $3.47, a 20.5% increase year over year.
• Projected quarterly revenue is approximately $11.95 billion, a 10.7% rise from the previous year.
• The Aerospace Unit is anticipated to see robust sales, especially from Gulfstream G700 jet deliveries, with projected revenues of $2.8 billion.

General Dynamics Corporation, listed as NYSE:GD, is a prominent player in the aerospace and defense industry. The company is known for its diverse range of products and services, including Gulfstream business jets and combat vehicles. As a major defense contractor, General Dynamics competes with other industry giants like Lockheed Martin and Northrop Grumman.

General Dynamics is set to release its quarterly earnings on April 23, 2025, before the market opens. Analysts expect the company to report earnings per share (EPS) of $3.47, reflecting a 20.5% increase from the previous year. The projected revenue for the quarter is approximately $11.95 billion, marking a 10.7% rise year over year.

Despite an average negative earnings surprise of 1.61% over the last four quarters, the upcoming results are expected to show strong performance across all business segments. The Aerospace Unit, in particular, is anticipated to post robust sales, driven by Gulfstream aircraft deliveries, especially the G700 jets. The Zacks Consensus Estimate for the Aerospace segment's revenues is projected at $2.8 billion, a 35.4% increase from the same quarter last year.

The stock's movement will largely depend on whether the actual results surpass expectations. A positive earnings surprise could lead to a rise in the stock price, while a miss might result in a decline. Changes in earnings estimates are crucial as they can influence investor reactions to the stock, as highlighted by empirical research.

General Dynamics has a price-to-earnings (P/E) ratio of 19.75 and a price-to-sales ratio of 1.54, indicating the market's valuation of its sales. The company's debt-to-equity ratio is 0.48, showing a moderate level of debt compared to equity. The current ratio is 1.37, reflecting the company's ability to cover short-term liabilities with short-term assets.