General Dynamics Corp.
) to beat expectations when it reports second quarter 2013
results on Jul 24.
Why a Likely Positive Surprise?
Our proven model shows that General Dynamics is likely to beat
earnings because it has the right combination of two key
Positive Zacks ESP:
Expected Surprise Prediction or ESP, which represents the
difference between the Most Accurate estimate and the Zacks
Consensus Estimate, is at +0.61%. This is a meaningful and
leading indicator of a likely positive earnings surprise for the
Zacks Rank #3 (Hold):
Note that stocks with Zacks Ranks of #1, 2 and 3 have a
significantly higher chance of beating earnings. The Sell rated
stocks (#4 and 5) should never be considered going into an
The combination of General Dynamics' Zacks Rank #3 (Hold) and
+0.61% ESP makes us confident of a positive earnings beat on Jul
What is Driving the Better Than Expected
General Dynamics' revenue exposure is spread over a broad
portfolio of products and services that keeps the overall growth
momentum steady. With back-to-back Department of Defense
contracts, the company seems to be well positioned to generate
revenue. Jet sales at the Gulfstream business are continuing to
see traction even in the slowing defense sales scenario.
Gulfstream is expected to contribute more significantly to
General Dynamics' earnings going forward.
The company is trying to improve the value of the products it
delivers and is committed towards responding to customers'
changing requirements. In order to face the changing demand in
some of its markets, the company recently consolidated General
Dynamics Armament and Technical Products into General Dynamics
Ordnance and Tactical Systems.
Other Stocks to Consider
General Dynamics is not the only firm looking up this earnings
season. We also see likely earnings beats coming from these three
The Boeing Company
), with Earnings ESP of +1.27% and a Zacks Rank #2 (Buy).
BOEING CO (BA): Free Stock Analysis Report
EMBRAER AIR-ADR (ERJ): Free Stock Analysis
GENL DYNAMICS (GD): Free Stock Analysis
NORTHROP GRUMMN (NOC): Free Stock Analysis
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), with Earnings ESP of +6.35% and a Zacks Rank #3 (Hold).
Northrop Grumman Corp.
), with Earnings ESP of +0.59% and a Zacks Rank #3 (Hold).