General Dynamics Corporation (NYSE: GD) develops and supplies aerospace and defense products to both the federal government and private customers. The stock of the company, which deals in a wide range of products including weapons systems and tanks, have been delivering steady returns.
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%.