General Dynamics (NYSE:GD) shares are trending marginally lower in the early trading session today after the defense and aerospace major delivered a mixed set of first-quarter results.
Mixed Q1 Numbers
In Q1, GD’s revenue increased by 8.6% year-over-year to $10.7 billion. The figure fared better than estimates by $440 million. In contrast, the company’s EPS of $2.88 fell short of expectations by $0.03. The quarter was marked by a healthy order backlog and expanding margins for GD. Its operating earnings rose by 10.4% to $1 billion, and the operating margin expanded by 20 basis points to 9.7%.
GD’s Robust Order Backlog
Additionally, the company’s order backlog increased by 4.4% to $93.7 billion. GD estimates the total estimated contract value, which is the sum of all backlog components, to be a whopping $134 billion. Importantly, the company recently received FAA certification for the Gulfstream G700 plane. The certification opens the doors for GD to begin customer deliveries over the coming periods.
What Is the GD Stock Price Prediction?
General Dynamics’ share price has jumped by nearly 33% over the past year. Overall, the Street has a Moderate Buy consensus rating on the stock, alongside an average GD price target of $307.82. However, analysts’ views on the company could see a revision following today’s earnings report.
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