General Dynamics (GD) reported robust results in the second quarter. The company reported earnings of $3.26 per share, an increase of 20.7% year-over-year, compared to analysts’ expectations of $3.28 per share.
GD’s Q2 Revenue Breakdown
The aerospace and defense company generated revenues of $12 billion, up by 18% year-over-year, and exceeded consensus estimates of $11.46 billion. More importantly, the company had an order backlog of $91.3 billion.
GD’s Aerospace segment saw its revenues jump by 50.5% year-over-year to $2.94 billion as the company continued to increase deliveries of its G700 business jet and its Defense businesses continued to grow, “reflecting increased demand in response to the threat environment.”
In fact, General Dynamics saw a dramatic 50% surge in business jet deliveries this quarter, totaling 37 jets. This impressive uptick was fueled by the FAA’s recent certification of the G700 business jet. Despite facing cost pressures from a tight U.S. defense budget, the demand for military equipment continues to thrive amid ongoing geopolitical tensions.
According to the TipRanks “Bulls Say, Bears Say,” analysts bullish on GD expect that the company’s defense portfolio will show “top-line momentum with expected growth in key platforms.”
Is GD Stock a Good Investment?
Analysts remain cautiously optimistic about GD stock, with a Moderate Buy consensus rating based on 11 Buys and four Holds. Over the past year, GD has increased by more than 25%, and the average GD price target of $316.87 implies an upside potential of 13.5% from current levels. These analyst ratings are likely to change following GD’s Q2 results today.
