Global aerospace and defense company General Dynamics Corp. (GD) has reported mixed results for the third quarter of 2021. Earnings of $3.07 per share increased 5.9% year-over-year and surpassed the Street’s estimate of $2.98.
Revenue climbed 1.5% year-over-year to $9.6 billion but lagged analyst’s expectations of $9.8 billion. Growth in marine systems and aerospace units were partially offset by lower revenue from combat systems and technologies.
Backlog at the end of the quarter stood at $88.1 billion, up 8.1% from the year-ago quarter. Total estimated contract value, the sum of all backlog components, was $129.6 billion at the end of the quarter. (See General Dynamics stock chart on TipRanks)
The Chairman and CEO of General Dynamics, Phebe N. Novakovic, said, “We continue to focus on delivering solid program performance and ensuring the well-being of our people, who are rising above the challenges of the pandemic to support our customers.”
Earlier this month, Robert W. Baird analyst Peter Arment maintained a Buy rating on General Dynamics with a price target of $243 (18.1% upside potential).
Arment said, “The order environment is on firm footing at Gulfstream, which paired with growth locked in at Marine and stability across the rest of the portfolio should allow GD to maintain the premium valuation it has historically seen versus peers outside of recent years. We had originally stepped to the sidelines on GD sighting legacy program fears in exposed budget areas.” (See Analysts’ Top Stocks on TipRanks)
Overall, the stock has a Moderate Buy consensus rating based on 4 Buys and 3 Holds. The average General Dynamics price target of $216.71 implies 5.3% upside potential from current levels.
GD scores a “Perfect 10” on TipRanks’ Smart Score rating system, suggesting that the stock is likely to outperform market expectations.