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Will Segment Sales Aid General Dynamics (GD) Q3 Earnings?
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General Dynamics Corporation (GD - Free Report) is set to release third-quarter 2022 results on Oct 26 before market open.
General Dynamics delivered an earnings surprise of 2.47% in the last four quarters, on average. The strong growth in revenues across most of its business segments is likely to positively impact its third-quarter results.
Aerospace Unit to Boost the Overall Top Line
Increased global air travel demand is likely to have contributed to General Dynamics’ Aerospace business unit sales performance, mainly due to the increased demand for maintenance work and activity at its fixed-base operator facilities. Improved aircraft deliveries may also have added impetus to its third-quarter revenues.
The Zacks Consensus Estimate for the Aerospace segment’s revenues in the third quarter is pegged at $2,183 million, indicating a 5.7% improvement from revenues reported in the year-ago quarter.
Marine Systems to Contribute to Overall Sales
Marine Systems’ revenues are likely to have been positively impacted by the increased demand for shipbuilding from the U.S. Navy in the soon-to-be-reported quarter. In particular, the construction and repair volume for ships is likely to boost this segment’s third-quarter results.
The Zacks Consensus Estimate for the Marine segment’s revenues in the third quarter is pegged at $2,708 million, indicating a 2.7% increase from revenues reported in the year-ago quarter.
U.S. Stryker to Boost Combat Systems Sales
Increased revenues from U.S. Stryker wheeled combat vehicles are expected to have contributed to third-quarter revenues of Combat Systems. Also, strong orders and international orders for Abrams are likely to have added impetus to the top line of the segment.
The Zacks Consensus Estimate for the Combat Systems segment’s revenues in the third quarter is pegged at $1,797 million, indicating a 3% improvement from revenues reported in the year-ago quarter.
Technologies Unit Revenues
Strong order activity and a pipeline, buoyed by the government initiative to continue to modernize and upgrade mission support systems, are likely to have benefited the Technologies segment’s sales performance in the soon-to-be-reported quarter.
However, supply-chain shortages and delays in customer order activity might have impacted revenues from C5ISR solutions, thus partially damping the performance of revenues from this segment in the third quarter.
The Zacks Consensus Estimate for the Technologies segment’s revenues in the third quarter is pegged at $3,285 million, indicating 5.3% growth from revenues reported in the year-ago quarter.
Other Factors to Note
The impressive sales performance across all its segments makes us optimistic about GD’s overall top line in the third quarter. This, in turn, is likely to have aided the bottom line of the company in the soon-to-be-reported quarter.
However, the shortage of chips may have continued to plague the company’s ability to deliver certain products in the third quarter as well, thereby partly impacting overall results.
General Dynamics Corporation Price and EPS Surprise
The Zacks Consensus Estimate for third-quarter revenues is pegged at $9.93 billion, suggesting growth of 3.8% from the year-ago quarter.
The Zacks Consensus Estimate for third-quarter earnings is pegged at $3.16 per share, indicating growth of 2.9% from the prior-year reported figure.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for General Dynamics this time. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for an earnings beat. However, that is not the case here as given below.
General Dynamics has an Earnings ESP of -0.61% and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are a few defense companies that you may want to consider as these have the right combination of elements to post an earnings beat this season:
Spirit Aerosystems has a four-quarter average negative earnings surprise of 426.09%. The Zacks Consensus Estimate for SPR’s third-quarter earnings indicates an improvement of 65.5% from the prior-year reported figure.
Transdigm Group (TDG - Free Report) has an Earnings ESP of +5.86% and a Zacks Rank #3. Transdigm delivered a four-quarter average earnings surprise of 5.95%.
The Zacks Consensus Estimate for TDG’s third-quarter sales and earnings is pegged at $1.51 billion and $5.03 per share, respectively.
Upcoming Defense Release
Huntington Ingalls Industries (HII - Free Report) is expected to release its third-quarter results on Nov 3. It sports a Zacks Rank #1.
The Zacks Consensus Estimate for Huntington’s third-quarter earnings, pegged at $3.54 per share, indicates a decline of 3% from the prior-year reported figure. The Zacks Consensus Estimate for HII’s sales suggests a growth rate of 14.9% from the prior-year reported figure.
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Will Segment Sales Aid General Dynamics (GD) Q3 Earnings?
General Dynamics Corporation (GD - Free Report) is set to release third-quarter 2022 results on Oct 26 before market open.
General Dynamics delivered an earnings surprise of 2.47% in the last four quarters, on average. The strong growth in revenues across most of its business segments is likely to positively impact its third-quarter results.
Aerospace Unit to Boost the Overall Top Line
Increased global air travel demand is likely to have contributed to General Dynamics’ Aerospace business unit sales performance, mainly due to the increased demand for maintenance work and activity at its fixed-base operator facilities. Improved aircraft deliveries may also have added impetus to its third-quarter revenues.
The Zacks Consensus Estimate for the Aerospace segment’s revenues in the third quarter is pegged at $2,183 million, indicating a 5.7% improvement from revenues reported in the year-ago quarter.
Marine Systems to Contribute to Overall Sales
Marine Systems’ revenues are likely to have been positively impacted by the increased demand for shipbuilding from the U.S. Navy in the soon-to-be-reported quarter. In particular, the construction and repair volume for ships is likely to boost this segment’s third-quarter results.
The Zacks Consensus Estimate for the Marine segment’s revenues in the third quarter is pegged at $2,708 million, indicating a 2.7% increase from revenues reported in the year-ago quarter.
U.S. Stryker to Boost Combat Systems Sales
Increased revenues from U.S. Stryker wheeled combat vehicles are expected to have contributed to third-quarter revenues of Combat Systems. Also, strong orders and international orders for Abrams are likely to have added impetus to the top line of the segment.
The Zacks Consensus Estimate for the Combat Systems segment’s revenues in the third quarter is pegged at $1,797 million, indicating a 3% improvement from revenues reported in the year-ago quarter.
Technologies Unit Revenues
Strong order activity and a pipeline, buoyed by the government initiative to continue to modernize and upgrade mission support systems, are likely to have benefited the Technologies segment’s sales performance in the soon-to-be-reported quarter.
However, supply-chain shortages and delays in customer order activity might have impacted revenues from C5ISR solutions, thus partially damping the performance of revenues from this segment in the third quarter.
The Zacks Consensus Estimate for the Technologies segment’s revenues in the third quarter is pegged at $3,285 million, indicating 5.3% growth from revenues reported in the year-ago quarter.
Other Factors to Note
The impressive sales performance across all its segments makes us optimistic about GD’s overall top line in the third quarter. This, in turn, is likely to have aided the bottom line of the company in the soon-to-be-reported quarter.
However, the shortage of chips may have continued to plague the company’s ability to deliver certain products in the third quarter as well, thereby partly impacting overall results.
General Dynamics Corporation Price and EPS Surprise
General Dynamics Corporation price-eps-surprise | General Dynamics Corporation Quote
Q3 Estimates
The Zacks Consensus Estimate for third-quarter revenues is pegged at $9.93 billion, suggesting growth of 3.8% from the year-ago quarter.
The Zacks Consensus Estimate for third-quarter earnings is pegged at $3.16 per share, indicating growth of 2.9% from the prior-year reported figure.
What the Zacks Model Unveils
Our proven model does not conclusively predict an earnings beat for General Dynamics this time. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for an earnings beat. However, that is not the case here as given below.
General Dynamics has an Earnings ESP of -0.61% and a Zacks Rank #4 (Sell). You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are a few defense companies that you may want to consider as these have the right combination of elements to post an earnings beat this season:
Spirit Aerosystems (SPR - Free Report) has an Earnings ESP of +47.19% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Spirit Aerosystems has a four-quarter average negative earnings surprise of 426.09%. The Zacks Consensus Estimate for SPR’s third-quarter earnings indicates an improvement of 65.5% from the prior-year reported figure.
Transdigm Group (TDG - Free Report) has an Earnings ESP of +5.86% and a Zacks Rank #3. Transdigm delivered a four-quarter average earnings surprise of 5.95%.
The Zacks Consensus Estimate for TDG’s third-quarter sales and earnings is pegged at $1.51 billion and $5.03 per share, respectively.
Upcoming Defense Release
Huntington Ingalls Industries (HII - Free Report) is expected to release its third-quarter results on Nov 3. It sports a Zacks Rank #1.
The Zacks Consensus Estimate for Huntington’s third-quarter earnings, pegged at $3.54 per share, indicates a decline of 3% from the prior-year reported figure. The Zacks Consensus Estimate for HII’s sales suggests a growth rate of 14.9% from the prior-year reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.