GD Earnings Prediction
The chart below shows how GD performed 10 days before and after its earnings report, based on data from the past quarters. Typically, GD sees a +0.66% change in stock price 10 days leading up to the earnings, and a +1.15% change 10 days following the report. On the earnings day itself, the stock moves by -1.16%. This data can give you a slight idea of what to expect for the next quarter's release.
GD Key Earning Data
GD Earnings Analysis
Positive
Earnings Exceed Expectations: General Dynamics Corporation reported earnings of $3.66 per diluted share, exceeding expectations of $3.5, marking a 27.1% increase from the previous year.
Quarterly Revenue Increase: Revenue for the quarter was $12.2 billion, up 13.9% compared to the same quarter last year, indicating strong growth across all segments.
Earnings Growth Highlights: Operating earnings increased by 22.4% to $1.268 billion, with net earnings rising 24.4% to $994 million, showcasing overall financial health.
Aerospace Revenue Surge: The Aerospace segment led revenue growth with a 45.2% increase, driven by a 50% rise in aircraft deliveries, including the introduction of the G700.
Aerospace Operating Earnings Surge: Operating earnings in Aerospace surged by 59.4%, reflecting improved margins and successful delivery cadence.
Revenue Increase and Order Growth: The Technologies Group achieved a revenue increase of 6.8%, with a book-to-bill ratio of 1.1, indicating strong order activity and backlog growth.
Shareholder Value Commitment: General Dynamics returned over $980 million to shareholders through dividends and share repurchases, demonstrating commitment to shareholder value.
Strong Cash Position: The company ended the quarter with a cash balance of approximately $1.2 billion, indicating strong liquidity and financial stability.
Negative
Book-to-Bill Ratio Decline: Overall book-to-bill ratio for the company was less than one times, indicating that orders did not keep pace with revenue growth.
Negative Free Cash Flow: Free cash flow for the quarter was a negative $290 million, which, despite being better than expected, indicates cash flow challenges.
Defense Business Challenges: The defense businesses were impacted by a working capital buildup due to growth timing, which could affect future cash flow and operational efficiency.
Supply Chain Challenges: The company is facing delays and quality problems in the supply chain, which have hindered operational leverage despite revenue growth.
Union Strike Authorization: One of the unions has voted to authorize a strike, which could disrupt operations and impact production schedules.
Market Uncertainty Impact: There is significant uncertainty in the market, particularly on the IT services side, which could affect future performance and revenue stability.
GD FAQs
How does GD typically perform around its earnings report dates?
GD's stock performance around earnings reports can vary, but historical data shows specific patterns, such as a +0.66% change leading up to the report and a +1.15% change in the 10 days following the release.
Is General Dynamics Corp (GD) Q1 2025 Earnings Call Summary positive or negative?
How can historical earnings data help predict future stock performance?
GD Earning Call Sentiment
General Dynamics Corporation (NYSE:GD) Q1 2025 Earnings Call Transcript
GD.N
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