Why Aerospace And Defense Giant General Dynamics Shares Are Diving Today
Portfolio Pulse from Lekha Gupta
General Dynamics Corp (NYSE:GD) shares fell after reporting Q1 FY24 results with revenue growth of 8.6% Y/Y to $10.73 billion, surpassing consensus but missing EPS estimates with $2.88 versus the expected $3.03. The company saw increased backlogs across segments, with a notable 6.2% Y/Y growth in the Aerospace segment. Operating earnings rose 10.4% Y/Y, but the company experienced a negative operating cash flow of $(278) million. Despite solid operating results and the start of Gulfstream G700 deliveries, shares dropped 5.8% to $275.64.
April 24, 2024 | 2:58 pm
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NEGATIVE IMPACT
General Dynamics reported higher than expected Q1 FY24 revenue but missed EPS estimates, leading to a 5.8% drop in share price.
The drop in General Dynamics' share price is directly attributed to the company's earnings report, where it missed EPS estimates despite higher revenue and increased backlogs. Negative operating cash flow also likely contributed to investor concerns.
CONFIDENCE 90
IMPORTANCE 90
RELEVANCE 100
NEGATIVE IMPACT
Investors can gain exposure to General Dynamics through the First Trust Indxx Aerospace & Defense ETF, which may be impacted by GD's stock performance.
As an ETF that includes General Dynamics, MISL may experience indirect impacts from GD's stock performance, particularly given the negative reaction to GD's earnings report.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50
NEGATIVE IMPACT
Global X Defense Tech ETF, which includes General Dynamics, might be affected by GD's recent stock performance following its Q1 earnings report.
SHLD, as an ETF that holds General Dynamics, may see an indirect impact on its performance due to GD's disappointing earnings and subsequent stock price decline.
CONFIDENCE 75
IMPORTANCE 60
RELEVANCE 50