Zacks Research Issues Pessimistic Outlook for GD Earnings

General Dynamics Co. (NYSE:GD) – Stock analysts at Zacks Research dropped their Q1 2025 earnings per share (EPS) estimates for General Dynamics in a research report issued on Monday, January 13th. Zacks Research analyst R. Department now expects that the aerospace company will post earnings of $3.34 per share for the quarter, down from their previous estimate of $3.37. The consensus estimate for General Dynamics’ current full-year earnings is $13.84 per share. Zacks Research also issued estimates for General Dynamics’ Q2 2025 earnings at $3.70 EPS, Q3 2025 earnings at $2.73 EPS and FY2026 earnings at $17.30 EPS.

General Dynamics (NYSE:GD) last issued its quarterly earnings data on Wednesday, October 23rd. The aerospace company reported $3.35 EPS for the quarter, missing the consensus estimate of $3.48 by ($0.13). The business had revenue of $11.67 billion for the quarter, compared to analysts’ expectations of $11.65 billion. General Dynamics had a return on equity of 16.59% and a net margin of 7.90%. The firm’s revenue for the quarter was up 10.4% compared to the same quarter last year. During the same period in the previous year, the firm posted $3.04 EPS.

Other analysts also recently issued research reports about the company. Deutsche Bank Aktiengesellschaft lowered their price objective on General Dynamics from $303.00 to $295.00 and set a “hold” rating for the company in a research report on Thursday, January 2nd. Susquehanna dropped their price target on General Dynamics from $330.00 to $315.00 and set a “positive” rating for the company in a research note on Wednesday, January 8th. Wolfe Research downgraded General Dynamics from an “outperform” rating to a “peer perform” rating in a report on Wednesday, December 11th. TD Cowen upgraded General Dynamics to a “strong-buy” rating in a report on Tuesday, October 8th. Finally, Barclays reduced their price objective on General Dynamics from $330.00 to $305.00 and set an “overweight” rating for the company in a report on Monday, January 6th. One research analyst has rated the stock with a sell rating, twelve have issued a hold rating, eight have given a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat, General Dynamics currently has an average rating of “Hold” and a consensus price target of $304.53.

General Dynamics Stock Performance

NYSE:GD opened at $265.89 on Wednesday. The business has a 50 day moving average of $275.30 and a 200 day moving average of $288.61. The company has a market capitalization of $73.11 billion, a price-to-earnings ratio of 20.25, a PEG ratio of 1.62 and a beta of 0.61. General Dynamics has a 1-year low of $247.36 and a 1-year high of $316.90. The company has a debt-to-equity ratio of 0.32, a current ratio of 1.32 and a quick ratio of 0.80.

Hedge Funds Weigh In On General Dynamics

Several large investors have recently modified their holdings of the stock. International Assets Investment Management LLC boosted its holdings in General Dynamics by 40,389.3% during the 3rd quarter. International Assets Investment Management LLC now owns 1,379,472 shares of the aerospace company’s stock valued at $416,876,000 after acquiring an additional 1,376,065 shares during the period. State Street Corp lifted its stake in shares of General Dynamics by 9.4% during the 3rd quarter. State Street Corp now owns 10,945,110 shares of the aerospace company’s stock worth $3,307,612,000 after purchasing an additional 943,247 shares during the last quarter. Geode Capital Management LLC lifted its stake in shares of General Dynamics by 13.0% during the 3rd quarter. Geode Capital Management LLC now owns 5,557,404 shares of the aerospace company’s stock worth $1,674,998,000 after purchasing an additional 638,342 shares during the last quarter. Two Sigma Advisers LP increased its position in General Dynamics by 117.0% during the 3rd quarter. Two Sigma Advisers LP now owns 858,600 shares of the aerospace company’s stock valued at $259,469,000 after buying an additional 463,000 shares in the last quarter. Finally, 1832 Asset Management L.P. increased its position in General Dynamics by 2,189.3% during the 2nd quarter. 1832 Asset Management L.P. now owns 374,207 shares of the aerospace company’s stock valued at $108,572,000 after buying an additional 357,861 shares in the last quarter. Institutional investors own 86.14% of the company’s stock.

Insiders Place Their Bets

In other news, VP Christopher J. Brady sold 5,540 shares of the business’s stock in a transaction that occurred on Friday, November 22nd. The stock was sold at an average price of $280.91, for a total transaction of $1,556,241.40. Following the transaction, the vice president now owns 20,296 shares of the company’s stock, valued at approximately $5,701,349.36. The trade was a 21.44 % decrease in their position. The transaction was disclosed in a document filed with the SEC, which can be accessed through the SEC website. Corporate insiders own 1.52% of the company’s stock.

General Dynamics Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Friday, February 7th. Investors of record on Friday, January 17th will be issued a $1.42 dividend. The ex-dividend date of this dividend is Friday, January 17th. This represents a $5.68 dividend on an annualized basis and a yield of 2.14%. General Dynamics’s dividend payout ratio is presently 43.26%.

General Dynamics declared that its Board of Directors has authorized a share repurchase plan on Wednesday, December 4th that permits the company to repurchase 10,000,000 outstanding shares. This repurchase authorization permits the aerospace company to repurchase shares of its stock through open market purchases. Shares repurchase plans are usually a sign that the company’s board believes its shares are undervalued.

About General Dynamics

General Dynamics Corporation operates as an aerospace and defense company worldwide. It operates through four segments: Aerospace, Marine Systems, Combat Systems, and Technologies. The Aerospace segment produces and sells business jets; and offers aircraft maintenance and repair, management, aircraft-on-ground support and completion, charter, staffing, and fixed-base operator services.