General Dynamics Corporation (GD), headquartered in Reston, Virginia, is a global aerospace and defense company. Valued at $82.5 billion by market cap, the company offers a broad portfolio of products and services in business aviation, combat vehicles, weapons systems, munitions, shipbuilding design and construction, information systems, and technologies. The company is anticipated to release its Q3 2024 earnings on Wednesday, Oct. 23.

Ahead of the event, analysts expect General Dynamics’ Q3 EPS to surge 22.4% year over year to $3.72. The company has surpassed Wall Street’s EPS estimates in just one of the previous four quarters while missing on three other occasions. Its profit per share for the last reported quarter grew 20.7% year over year to $3.26 but missed the consensus estimates by 1.2%.

For fiscal 2024, analysts expect General Dynamics' EPS to rise 20.4% year over year to $14.47 from $12.02 per share in fiscal 2023. In fiscal 2025, analysts expect General Dynamics’ bottom line to grow another 12.9% to $16.34 per share.

GD stock has gained 15.8% on a YTD basis, underperforming the S&P 500 Index’s ($SPX) 20.6% returns and the Industrial Select Sector SPDR Fund’s (XLI) 18.9% gains during the same time frame.

General Dynamics is like a steady battleship cruising through choppy waters - moving forward but not at full speed. On July 24, its stock dipped over 3% after Q2 earnings results missed EPS expectations, though revenue hit $12 billion, beating forecasts.

Key partnerships, like its collaboration with Lockheed Martin Corporation (LMT) on advanced missile motors, have bolstered performance. Plus, with a slew of defense contracts, including a $6.8 billion naval deal, General Dynamics is slowly stacking up wins.

Yet, these deals often unfold over the years, delivering a gradual revenue stream rather than an immediate lift. Marine systems, its biggest moneymaker, generate $12.5 billion annually, but tight margins and stretched timelines temper any explosive growth. Investors took notice, but only slightly.

Wall Street analysts are highly bullish on GD’s prospects. The stock has a consensus “Strong Buy” rating from the 21 analysts covering it, with 15 recommending a “Strong Buy,” one suggesting a “Moderate Buy,” and the remaining five analysts playing it safe with a “Hold” rating. The mean price target of $325.81 indicates an upside potential of 8.4% from the current price levels.

• Boeing’s Quarterly Earnings Preview: What You Need to Know
• AT&T’s Q3 2024 Earnings: What to Expect
• FOMC, CPI and Other Key Things to Watch this Week
• Should Investors Hold Steady with Nike Stock?