General Dynamics Corp. (GD) is a global aerospace and defense business with a broad portfolio of products and services in business aviation, ship construction and repair, land combat vehicles, weapons systems and munitions, and technology.
The company generated 59% of its revenue from products and 41% of its revenue from services during 2020. These revenues were generated across multiple segments, including aerospace (22%), marine systems (26%), combat systems (19%), and technologies (33%). The U.S. government accounted for approximately 69% of revenue for the year.
Q4 Earnings Miss
General Dynamics reported fourth quarter revenue that fell 2.7% to $10.48 billion, missing consensus estimates by $280 million, along with non-GAAP earnings of $3.49 per share, missing consensus estimates by five cents. Marine systems experienced the strongest gains for the quarter and offset weakness in aerospace, technologies, and combat systems.
Analysts have been bullish on the stock despite the weak quarter. For instance, Cowen analyst Cai von Rumohr sees further upside on extended Gulfstream lift starting in 2022 and a turnaround of its General Dynamics Information Technology (GDIT) unit in 2022 and 2023.
The company raised its quarterly dividend by 8.2% to $1.19 per share, which represents a 2.61% forward yield. The dividend is payable on May 7, 2021 to shareholders on record as of April 9, 2021.
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