Summary
General Dynamics Corporation (GD) filed an 8-K report on January 24, 2007, detailing its financial outlook for fiscal year 2007. The company projects revenues of approximately $26.3 billion and net income of about $1.9 billion. This translates to an anticipated fully diluted earnings per share (EPS) of approximately $4.60, representing a 9.5% increase over the prior year's EPS. The guidance reflects management's best estimate of the impact of defense appropriations supplemental spending bills, though they caution that precise forecasting is challenging due to programmatic uncertainties and delays in contract issuance. Further details were provided regarding the expected quarterly earnings progression, with EPS projected to be $1.02 in Q1, $1.10 in Q2, $1.19 in Q3, and $1.29 in Q4 of 2007. In addition to the financial guidance, the report also disclosed that Chairman and CEO Nicholas D. Chabraja intends to extend his employment agreement through at least the first half of 2009, with formalization expected in the spring of 2007. Investors can access a replay of the conference call that provided this information on the company's website or via telephone.
Key Highlights
- 1General Dynamics forecasts 2007 revenues of approximately $26.3 billion.
- 2The company anticipates 2007 net income to be around $1.9 billion.
- 3Projected fully diluted EPS for 2007 is approximately $4.60, a 9.5% increase year-over-year.
- 4CEO Nicholas D. Chabraja intends to extend his employment agreement through at least the first half of 2009.
- 5Guidance is contingent on defense appropriations supplemental spending bills, with noted forecasting difficulties.
- 6Quarterly EPS is expected to increase sequentially throughout 2007, from $1.02 in Q1 to $1.29 in Q4.
- 7A conference call replay is available for investors seeking more detail on the 2007 outlook.