Dallas, Texas 07/21/2015 (Financialstrend) – General Dynamics Corporation (NYSE:GD) has been awarded two contracts by the US Army Contracting Command worth $126 million. The contracts are for the supply of 2.75/70mm Hydra-70 air to ground rocket system for the US military and Foreign Military Sales FMS.
Buoyed by the awarding of the contract, the company’s president and general manager Dan Paul believes the company’s Hydra-70 rockets provides the US Army with firepower that is versatile affordable and reliable. General Dynamics Corporation (NYSE:GD) hopes to seal similar deals with the US military as well as its allies according to the executive.
General Dynamics Corporation (NYSE:GD) has continuously produced Hydra-70 rockets since 1996 consequently offering several warhead configurations that have allowed aircrew to match the rocket to a specific mission. The rockets can be fired from a variety of rotary and fixed wing platforms.
Separately analysts at RBC Capital have raised their price target for General Dynamics Corporation (NYSE:GD) from $152 to $161 a share. The price increase comes on the belief that the company continues to accrue strength on its military contracting business. Stable profits from the sale of civilian business jets also justify the price increase according to the research firm.
GD Long Term Prospects
RBC Capital maintains that General Dynamics Corporation (NYSE:GD) is on course to maintain steady revenues over the next few years as G650 growth continues to offset ongoing weaknesses in the sale of G450/550. The company’s combat systems business also continues to deliver mid to high single digit growth on sustained margin levels with a 15% operating profit margin.
Submarine sales to the U.S Navy are also expected to have an impact on General Dynamics Corporation (NYSE:GD) marine systems business. The company is expected to post its earnings on July 29, 2015, with the Street expecting earnings per share of $2.03 having reported actual earnings of $2.14 a share for the first quarter.