Will Segmental Sales Drive General Dynamics in Q1 Earnings?

General Dynamics Corporation GD is set to release first-quarter 2025 results on April 23, 2025, before market open.The company delivered a negative earnings surprise of 1.61% in the last four quarters, on average. The strong revenue performance across its business segments and lower interest expenses are likely add impetus to its overall first-quarter results.GD’s Aerospace Unit to Post Solid SalesSolid revenues earned from the deliveries of Gulfstream aircraft, in particular G700 jets, are likely to have bolstered the top line of the Aerospace business segment.The Zacks Consensus Estimate for the Aerospace segment’s revenues in the first quarter is pegged at $2,822.5 million. This indicates a 35.4% increase from revenues reported in the year-ago quarter.General Dynamics Corporation Price and EPS Surprise General Dynamics Corporation price-eps-surprise | General Dynamics Corporation QuoteGD’s Marine Systems Unit Holds PotentialThe Marine Systems unit’s revenues are likely to have benefited from the increased sales volume from the construction and engineering of major shipbuilding and submarine programs like the Columbia-class and Virginia-class submarines, as well as DDG-51.The Zacks Consensus Estimate for the Marine segment’s revenues in the first quarter is pegged at $3,528.2 million. This calls for a 5.9% rise from the year-ago quarter’s figure.GD’s Combat Systems Sales Likely to RiseStrong demand for combat vehicles is likely to have boosted the Combat Systems unit’s revenue performance in the first quarter. Solid demand for artillery and munitions products is also expected to have contributed favorably to this segment’s top line.The Zacks Consensus Estimate for the Combat Systems segment’s revenues in the first quarter is pegged at $2,124.4 million. This indicates an increase of 1.1% from the year-ago quarter’s reported figure.GD’s Technologies Unit Likely to IncreaseEnhanced digital accelerator investments supporting GDIT's consistent growth, as well as increased IT services globally, are likely to have favored the Technologies unit’s revenues.The Zacks Consensus Estimate for the Technologies segment’s revenues is pegged at $3,388.3 million. This indicates a rise of 5.4% from the year-ago quarter’s figure.GD’s Backlog Shows DeclineOur model indicates a year-over-year decline of 2% to $91.86 billion for GD’s backlog  in the first quarter. This indicates that the company is likely to have faced some challenges in securing new contracts.Q1 Expectations for GDWith all of General Dynamics’ segments implying solid top-line growth projections, the overall revenue growth prospects remain bright.The Zacks Consensus Estimate for GD’s first-quarter revenues is pegged at $11.94 billion, which indicates a 11.3% rise from the year-ago quarter.Such a solid top-line performance projection is likely to have aided GD’s bottom line. Also, lower interest expenses and improved year-over-year operating margin at all of its segments, except Technologies, are expected to have favorably impacted the company’s overall earnings.The Zacks Consensus Estimate for the company’s first-quarter earnings is pegged at $3.47 per share, which indicates a rise of 20.5% from the prior-year reported figure. (Find the latest EPS estimates and surprises on Zacks Earnings Calendar.)What the Zacks Model Unveils for GDOur proven model predicts an earnings beat for General Dynamics this time. The combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat, which is the case here, as you will see below.GD’s Earnings ESP: GD has an Earnings ESP of +0.22%. You can uncover the best stocks before they’re reported with our Earnings ESP Filter.GD’s Zacks Rank: General Dynamics currently carries a Zacks Rank of 3. You can see the complete list of today’s Zacks #1 Rank stocks here.Other Stocks to ConsiderBelow, we have mentioned a few other players from the same industry that also have the right combination of elements to beat on earnings in the upcoming releases:The Boeing Company BA is set to report first-quarter 2025 earnings on April 23, 2025, before market open. It has an Earnings ESP of +13.08% and a Zacks Rank of 3 at present.The Zacks Consensus Estimate for BA’s loss is pegged at $1.54 per share. The consensus estimate for its sales is pegged at $19.29 billion, indicating year-over-year growth of 16.4%.Embraer ERJ is set to report its first-quarter 2025 results soon. It has an Earnings ESP of +53.57% and a Zacks Rank of 1 at present.The Zacks Consensus Estimate for ERJ’s earnings is pegged at 28 cents per share. The consensus estimate for its sales is pegged at $1.12 billion, indicating year-over-year growth of 24.7%.RTX Corporation RTX is set to report its first-quarter results on April 22, before market open. It has an Earnings ESP of +2.55% and a Zacks Rank of 3 at present.The Zacks Consensus Estimate for RTX’s earnings is pegged at $1.34 per share. The consensus estimate for its sales is pegged at $19.71 billion, indicating year-over-year growth of 2.1%.Zacks' Research Chief Names "Stock Most Likely to Double"Our team of experts has just released the 5 stocks with the greatest probability of gaining +100% or more in the coming months. Of those 5, Director of Research Sheraz Mian highlights the one stock set to climb highest.This top pick is among the most innovative financial firms. With a fast-growing customer base (already 50+ million) and a diverse set of cutting edge solutions, this stock is poised for big gains. Of course, all our elite picks aren’t winners but this one could far surpass earlier Zacks’ Stocks Set to Double like Nano-X Imaging which shot up +129.6% in little more than 9 months.Free: See Our Top Stock And 4 Runners UpWant the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Boeing Company (BA): Free Stock Analysis Report General Dynamics Corporation (GD): Free Stock Analysis Report Embraer-Empresa Brasileira de Aeronautica (ERJ): Free Stock Analysis Report RTX Corporation (RTX): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks