We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
General Dynamics (GD) Rides on Backlog & Product Development
Read MoreHide Full Article
General Dynamics Corporation’s (GD - Free Report) focus on product innovations should help maintain a steady growth momentum and drive earnings performance. The constant rise in GD’s backlog indicates a solid demand for its products, thereby bolstering its revenue generation prospects.
However, this Zacks Rank #3 (Hold) company has to face supply-chain issues that continue to pose risks for its Marine Systems’ submarine programs and Technologies segment.
Tailwinds
General Dynamics has been investing in its business to enhance operating efficiency, innovation and affordability for its customers. This is evident as capital expenditures in the first quarter of 2023 amounted to $161 million, up 14.2% from the prior-year quarter’s level. The company plans to invest $1.8 billion in the expanded and modernized facilities at Electric Boat to support submarine construction.
At the end of the first quarter, General Dynamics witnessed a record order backlog of $89.8 billion, up 3% from that registered in the year-ago period. This uptick in order inflow was driven by strong demand across the company’s product and services portfolio, as well as orders for all models of Gulfstream aircraft.
On the product development front, General Dynamics’ Gulfstream Aerospace unit is working on the ultra-long-range, ultra-large-cabin jet named G700. This jet features a technologically advanced flight deck, consisting of new engines that deliver high-speed performance. The aforementioned unit is currently in the process of flight testing and seeking U.S. Federal Aviation Administration certification for G700, which has logged more than 3,200 test hours.
Headwinds
The company has been witnessing supply-chain issues in its defense business, particularly in the Marine Systems (the submarine supply chain) and Technologies segments. GD anticipates that the supply-chain constraints of the Virginia submarine program will have an impact on its 2023 performance.
The Zacks Consensus Estimate for CW’s 2023 earnings per share (EPS) indicates an increase of 8.5% from the previous year’s level. The company delivered an average earnings surprise of 4.03% in the last four quarters.
TDG’s long-term (three to five year) earnings growth rate is 25.1%. The Zacks Consensus Estimate for TDG’s fiscal 2023 EPS indicates an improvement of 40.2% from that recorded in the previous year.
The Zacks Consensus Estimate for KAMN’s 2023 EPS has moved up 2.4% in the past 60 days. The company delivered an average earnings surprise of 44.8% in the last four quarters.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
General Dynamics (GD) Rides on Backlog & Product Development
General Dynamics Corporation’s (GD - Free Report) focus on product innovations should help maintain a steady growth momentum and drive earnings performance. The constant rise in GD’s backlog indicates a solid demand for its products, thereby bolstering its revenue generation prospects.
However, this Zacks Rank #3 (Hold) company has to face supply-chain issues that continue to pose risks for its Marine Systems’ submarine programs and Technologies segment.
Tailwinds
General Dynamics has been investing in its business to enhance operating efficiency, innovation and affordability for its customers. This is evident as capital expenditures in the first quarter of 2023 amounted to $161 million, up 14.2% from the prior-year quarter’s level. The company plans to invest $1.8 billion in the expanded and modernized facilities at Electric Boat to support submarine construction.
At the end of the first quarter, General Dynamics witnessed a record order backlog of $89.8 billion, up 3% from that registered in the year-ago period. This uptick in order inflow was driven by strong demand across the company’s product and services portfolio, as well as orders for all models of Gulfstream aircraft.
On the product development front, General Dynamics’ Gulfstream Aerospace unit is working on the ultra-long-range, ultra-large-cabin jet named G700. This jet features a technologically advanced flight deck, consisting of new engines that deliver high-speed performance. The aforementioned unit is currently in the process of flight testing and seeking U.S. Federal Aviation Administration certification for G700, which has logged more than 3,200 test hours.
Headwinds
The company has been witnessing supply-chain issues in its defense business, particularly in the Marine Systems (the submarine supply chain) and Technologies segments. GD anticipates that the supply-chain constraints of the Virginia submarine program will have an impact on its 2023 performance.
Stocks to Consider
Some better-ranked stocks from the same sector are CurtissWright Corporation (CW - Free Report) , TransDigm Group Inc. (TDG - Free Report) and Kaman Corp. , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
The Zacks Consensus Estimate for CW’s 2023 earnings per share (EPS) indicates an increase of 8.5% from the previous year’s level. The company delivered an average earnings surprise of 4.03% in the last four quarters.
TDG’s long-term (three to five year) earnings growth rate is 25.1%. The Zacks Consensus Estimate for TDG’s fiscal 2023 EPS indicates an improvement of 40.2% from that recorded in the previous year.
The Zacks Consensus Estimate for KAMN’s 2023 EPS has moved up 2.4% in the past 60 days. The company delivered an average earnings surprise of 44.8% in the last four quarters.