General Dynamics Corp

GD: XNYS (USA)

Morningstar Rating for Stocks	Fair Value	Economic Moat	Capital Allocation
	$299.00	Tyj	Ztydfdwlx

General Dynamics Earnings: Huge Order Book, but Supply Chain Hurts Profitability; Raising Fair Value

Nicolas Owens

Jul 26, 2023

General Dynamics reported second-quarter results that slightly exceeded FactSet consensus revenue and earnings expectations. Especially strong revenue growth was offset in the quarter by dips in operating margins across the board, mostly due to lingering supply chain issues that management warned of earlier this year, citing supply chain issues hitting Gulfstream and its marine systems divisions as well as the timing of other contracts. The company's supply chain issues remain most acute in aerospace (where planes all but complete are awaiting scarce parts) and marine, where the supply chain is unusually long and specialized.

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