Does Earnings Surprise History Hold Any Clue for General Dynamics (NYSE:GD)

Earnings results for General Dynamics (NYSE:GD)

General Dynamics Corporation is expected* to report earnings on 01/27/2021 before market open. The report will be for the fiscal Quarter ending Dec 2020. According to Zacks Investment Research, based on 8 analysts’ forecasts, the consensus EPS forecast for the quarter is $3.55. The reported EPS for the same quarter last year was $3.51.

General Dynamics last released its earnings results on October 28th, 2020. The aerospace company reported $2.90 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $2.85 by $0.05. The business earned $9.43 billion during the quarter, compared to analysts’ expectations of $9.60 billion. General Dynamics has generated $11.98 earnings per share over the last year and currently has a price-to-earnings ratio of 13.6. General Dynamics has confirmed that its next quarterly earnings report will be published on Wednesday, January 27th, 2021.

Analyst Opinion on General Dynamics (NYSE:GD)

15 Wall Street analysts have issued ratings and price targets for General Dynamics in the last 12 months. Their average twelve-month price target is $169.53, predicting that the stock has a possible upside of 12.77%. The high price target for GD is $225.00 and the low price target for GD is $138.00. There are currently 2 sell ratings, 6 hold ratings and 7 buy ratings for the stock, resulting in a consensus rating of “Hold.”

General Dynamics has received a consensus rating of Hold. The company’s average rating score is 2.33, and is based on 7 buy ratings, 6 hold ratings, and 2 sell ratings. According to analysts’ consensus price target of $169.53, General Dynamics has a forecasted upside of 12.8% from its current price of $150.33. General Dynamics has only been the subject of 1 research reports in the past 90 days.

Dividend Strength: General Dynamics (NYSE:GD)

General Dynamics pays a meaningful dividend of 2.87%, higher than the bottom 25% of all stocks that pay dividends. General Dynamics has been increasing its dividend for 30 years. The dividend payout ratio of General Dynamics is 36.73%. This payout ratio is at a healthy, sustainable level, below 75%. Based on earnings estimates, General Dynamics will have a dividend payout ratio of 38.10% next year. This indicates that General Dynamics will be able to sustain or increase its dividend.

Insiders buying/selling: General Dynamics (NYSE:GD)

In the past three months, General Dynamics insiders have sold more of their company’s stock than they have bought. Specifically, they have bought $0.00 in company stock and sold $652,939.00 in company stock. Only 6.60% of the stock of General Dynamics is held by insiders. 84.48% of the stock of General Dynamics is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

Earnings and Valuation of General Dynamics (NYSE:GD

Earnings for General Dynamics are expected to grow by 4.43% in the coming year, from $11.06 to $11.55 per share. The P/E ratio of General Dynamics is 13.64, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 24.17. The P/E ratio of General Dynamics is 13.64, which means that it is trading at a less expensive P/E ratio than the Aerospace sector average P/E ratio of about 74.16. General Dynamics has a PEG Ratio of 2.40. PEG Ratios above 1 indicate that a company could be overvalued. General Dynamics has a P/B Ratio of 3.21. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

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