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Will Aerospace Unit Drive General Dynamics' (GD) Q4 Earnings?
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General Dynamics Corporation (GD - Free Report) is scheduled to release fourth quarter and 2019 results on Jan 29, before the opening bell.
Robust segmental performance is likely to have boosted the company’s results in the soon-to-be-reported quarter.
Let’s take a detailed look at the factors influencing General Dynamics’ upcoming quarterly results.
Aerospace Unit: A Key Catalyst
General Dynamics’ Aerospace segment revenues are likely to have witnessed a solid boost in the fourth quarter, owing to increased G500 aircraft deliveries. Moreover, in October, the company's Gulfstream G500 received certification approval from the European Aviation Safety Agency, clearing the way for European Union registrations and customer deliveries. As a result, General Dynamics successfully delivered Gulfstream G500 to its first European customer in Georgia. Anticipating a few more such deliveries to have taken place in the subsequent days, we expect G500 to have favorably contributed to the Aerospace segment’s revenues in the fourth quarter.
Consequently, the Zacks Consensus Estimate for General Dynamics’ largest segment’s revenues in the fourth quarter is pegged at $3,037 million, implying a 12.3% rise from revenues reported in the year-ago quarter. Also, the segment’s operating income for the fourth quarter, pegged at $480 million, implies 25.7% growth from the figure reported in the year-ago quarter.
Q4 Backlog to Continue Thriving
General Dynamics has an impressive history of witnessing a steady flow of orders from both Pentagon and its foreign allies, courtesy of the huge demand for its enhanced military shipbuilding capabilities. Notably, during the fourth quarter, the company’s Electric Boat division successfully acquired a massive $22.2-billion Navy deal for the fifth block of Virginia-Class Submarines. It also secured a series of other smaller contracts. These are expected to get reflected in the company's backlog count in the to-be-reported results.
Solid Prospects for Mission Systems Unit
Rising demand for next-generation Satellite Communications Systems has been significantly driving the company’s Mission Systems unit’s top line. We expect the trend to get reflected in the company’s fourth-quarter results as well. In line with this, the Zacks Consensus Estimate for the company’s Mission Systems unit’s fourth-quarter revenues is pegged at $1,345 million, implying a 7.5% increase from the figure reported in the year-ago quarter.
Earnings & Revenue Estimates
With a handful of segments reflecting top-line growth for the fourth quarter, we are optimistic about General Dynamics’ overall performance. The Zacks Consensus Estimate for the company’s fourth-quarter sales is pegged at $10.6 billion, indicating 2.2% growth from the year-ago quarter’s reported figure.
A favorable margin performance and launch of aircraft might have acted as key catalysts for the company’s overall bottom line.
Hence, the company’s fourth-quarter earnings, pegged at $3.46 per share, indicates 12.7% growth from the year-ago quarter’s reported figure.
General Dynamics Corporation Price and EPS Surprise
Our proven model predicts an earnings beat for General Dynamics in the fourth quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Here are some defense stocks you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
Textron (TXT - Free Report) is scheduled to report fourth-quarter 2019 results on Jan 29. The company has an Earnings ESP of +1.85% and a Zacks Rank #3.
Heico Corporation (HEI - Free Report) is expected to release fourth-quarter 2019 results soon. The company has an Earnings ESP of +8.94% and a Zacks Rank #1.
Aerojet Rocketdyne Holdings is expected to release fourth-quarter 2019 results soon. The company has an Earnings ESP of +2.17% and a Zacks Rank #3.
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Will Aerospace Unit Drive General Dynamics' (GD) Q4 Earnings?
General Dynamics Corporation (GD - Free Report) is scheduled to release fourth quarter and 2019 results on Jan 29, before the opening bell.
Robust segmental performance is likely to have boosted the company’s results in the soon-to-be-reported quarter.
Let’s take a detailed look at the factors influencing General Dynamics’ upcoming quarterly results.
Aerospace Unit: A Key Catalyst
General Dynamics’ Aerospace segment revenues are likely to have witnessed a solid boost in the fourth quarter, owing to increased G500 aircraft deliveries. Moreover, in October, the company's Gulfstream G500 received certification approval from the European Aviation Safety Agency, clearing the way for European Union registrations and customer deliveries. As a result, General Dynamics successfully delivered Gulfstream G500 to its first European customer in Georgia. Anticipating a few more such deliveries to have taken place in the subsequent days, we expect G500 to have favorably contributed to the Aerospace segment’s revenues in the fourth quarter.
Consequently, the Zacks Consensus Estimate for General Dynamics’ largest segment’s revenues in the fourth quarter is pegged at $3,037 million, implying a 12.3% rise from revenues reported in the year-ago quarter. Also, the segment’s operating income for the fourth quarter, pegged at $480 million, implies 25.7% growth from the figure reported in the year-ago quarter.
Q4 Backlog to Continue Thriving
General Dynamics has an impressive history of witnessing a steady flow of orders from both Pentagon and its foreign allies, courtesy of the huge demand for its enhanced military shipbuilding capabilities. Notably, during
the fourth quarter, the company’s Electric Boat division successfully acquired a massive $22.2-billion Navy deal for the fifth block of Virginia-Class Submarines. It also secured a series of other smaller contracts. These are expected to get reflected in the company's backlog count in the to-be-reported results.
Solid Prospects for Mission Systems Unit
Rising demand for next-generation Satellite Communications Systems has been significantly driving the company’s Mission Systems unit’s top line. We expect the trend to get reflected in the company’s fourth-quarter results as well. In line with this, the Zacks Consensus Estimate for the company’s Mission Systems unit’s fourth-quarter revenues is pegged at $1,345 million, implying a 7.5% increase from the figure reported in the year-ago quarter.
Earnings & Revenue Estimates
With a handful of segments reflecting top-line growth for the fourth quarter, we are optimistic about General Dynamics’ overall performance. The Zacks Consensus Estimate for the company’s fourth-quarter sales is pegged at $10.6 billion, indicating 2.2% growth from the year-ago quarter’s reported figure.
A favorable margin performance and launch of aircraft might have acted as key catalysts for the company’s overall bottom line.
Hence, the company’s fourth-quarter earnings, pegged at $3.46 per share, indicates 12.7% growth from the year-ago quarter’s reported figure.
General Dynamics Corporation Price and EPS Surprise
General Dynamics Corporation price-eps-surprise | General Dynamics Corporation Quote
What the Zacks Model Unveils
Our proven model predicts an earnings beat for General Dynamics in the fourth quarter. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the chances of an earnings beat. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
General Dynamics has an Earnings ESP of +1.49% and a Zacks Rank #3. You can see the complete list of today’s Zacks #1 Rank stocks here.
Other Stocks to Consider
Here are some defense stocks you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this season:
Textron (TXT - Free Report) is scheduled to report fourth-quarter 2019 results on Jan 29. The company has an Earnings ESP of +1.85% and a Zacks Rank #3.
Heico Corporation (HEI - Free Report) is expected to release fourth-quarter 2019 results soon. The company has an Earnings ESP of +8.94% and a Zacks Rank #1.
Aerojet Rocketdyne Holdings is expected to release fourth-quarter 2019 results soon. The company has an Earnings ESP of +2.17% and a Zacks Rank #3.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained an impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
See their latest picks free >>