General Dynamics Expects Strong Q1 Earnings Amid Market Challenges

General Dynamics Corporation (GD), renowned for its presence in the aerospace and defense sectors, holds a market capitalization of $66.5 billion. Established in 1899 and based in Reston, Virginia, the company operates through four main segments: Aerospace, Marine Systems, Combat Systems, and Technologies. Market participants await the release of its fiscal Q1 earnings results, scheduled for Wednesday, April 23, before market opening.

Expected Earnings and Analyst Predictions

Ahead of the earnings call, analysts forecast GD will report a profit of $3.43 per share, marking a 19.1% increase from last year’s $2.88 per share. However, the company has struggled to meet Wall Street’s EPS expectations, outperforming in only one of the past four quarters. In the fourth quarter, GD managed an EPS of $4.15, narrowly exceeding consensus estimates.

Long-Term Earnings Growth Projections

Looking further ahead, analysts anticipate that for fiscal 2025, GD will achieve an EPS of $14.83 per share, which represents an 8.8% gain from the $13.63 reported in fiscal 2024. The following year, fiscal 2026, is projected to see an EPS growth of 15.6%, reaching $17.14 per share.

Recent Stock Performance and Market Context

Over the past year, GD shares have experienced a decline of 13.2%, contrasting with the S&P 500 Index’s ($SPX) decrease of 4.2% and the Industrial Select Sector SPDR Fund’s (XLI) drop of 7.2%. On April 7, GD stock rose more than 2%, supported by rising U.S.-China trade tensions. President Trump’s proposal to impose an additional 50% tariff on Chinese goods—potentially resulting in a total tariff of 104% if China continues its 34% duties on U.S. products—has unsettled global markets. Despite general market volatility, defense stocks such as GD have seen gains as geopolitical tensions increase investor interest in the defense sector.

Analyst Consensus and Future Outlook

The consensus among analysts for GD’s Stock is moderately bullish, denoted by an overall “Moderate Buy” rating. Out of 22 analysts analyzing the stock, eight recommend a “Strong Buy,” one advises a “Moderate Buy,” twelve suggest a “Hold,” and one analyst rates it a “Strong Sell.”

The average price target set by these analysts stands at $293.21, suggesting a potential upside of 15.3% from current market prices.

On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.

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