Global air travel demand has been steadily growing since the start of 2023, resulting in increased passenger traffic in all regions. Moreover, U.S. defense contractors have benefited as the war in Ukraine and tense US-China relations have fueled demand for weapons such as tanks, submarines, and munitions.
As a result, General Dynamics Corporation (GD), a leading aerospace and defense company, has seen steady demand growth for its products and services. It reported strong first quarter results, exceeding analysts’ revenue and EPS estimates. Moreover, the company has grown its revenue and EPS at CAGRs of 5.1% and 4.7% over the past five years.
The stock has gained marginally over the past five days, closing the last trading session at $218.13.
Given below are the factors help GD take off in May:
GD’s revenue increased 5.2% year-over-year to $9.88 billion for the fiscal first quarter ended April 2, 2023. The company’s operating earnings rose 3.3% year-over-year to $938 million. Its EPS came in at $2.66, representing an increase of 1.1% year-over-year. Its net income remained flat at $730 million.
Also, net cash provided by operating activities in the quarter totaled $1.50 billion, or 200% of net earnings. The company invested $161 million in capital expenditure and paid $345 million in dividends, ending the quarter with $2 billion in cash and equivalents.
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