Analyst Note
| Burkett Huey, CFA |Wide-moat-rated General Dynamics posted continued strength in aerospace despite some deteriorating fundamentals. Revenue of $9.4 billion and earnings per share of $2.61 beat FactSet consensus by 4.4% and 4.1%, respectively. After increasing our near-term margin estimates and our long-term defense revenue assumptions as we increase our global defense spending expectations, we are increasing our fair value estimate for General Dynamics to $215 per share from $201.