Analyst Note
| Burkett Huey, CFA |General Dynamics reported a solid third quarter, as its defense businesses continue to benefit from a strong operating environment, but its cyclical business jet segment faces demand challenges. We are lowering our fair value estimate to $181 per share from $185 as we account for lower Gulfstream deliveries in 2021 due to the G550 leaving production and a lack of production increases on other programs. Earnings per share declined 7.6% to $2.90 per share on a sales decline of 3.4% and 100 basis points of margin compression.