General Dynamics Corporation

This is our first report on the aerospace and defense giant, General Dynamics. The company started 2022 on a positive note and managed to deliver an all-around beat in its most recent quarterly results. The management saw an acceleration of indirect expenses that was impacted by an alteration in the equity compensation plan affecting the bottom-line but it stll produced an earnings beat. Gulfstream is committed to a comprehended and safe certification test program. Backlog and order activity has been particularly strong since the start of 2022. Aerospace has been a robust business with an increase in revenue and operating income. In terms of the performance of its new product, the G600 and G500 continue to perform quite well and General Dynamics also enjoys increases in DDG-51 and TAO construction volumes. We initiate coverage on the company with a ‘Hold’ rating.