The company’s stock has made strong gains since the beginning of the year but experienced weakness after it reported weaker-than-expected revenues for the third quarter of 2021. However, earnings increased and beat estimates in the September quarter.
A few weeks ago, the company reported a net income of $860 million or $3.09 per share for the three months ended September 2021, which is higher than last year’s profit of $834 million or $2.90 per share and above analysts’ consensus estimates.
The bottom line benefitted from a 2% increase in revenues to $9.6 billion. Market watchers had predicted a faster growth. The current momentum is expected to continue in the remainder of the year and beyond, thanks to continued order growth and new contracts.
Read management/analysts’ comments on quarterly earnings
“The company delivered solid third-quarter results, generating very strong cash flow and attractive margins. 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,” said chief executive officer Phebe Novakovic.
The stock has gained 33% since the beginning of the year and is currently trading slightly above the $200 mark. GD had closed Wednesday’s session up 1%.