As reported previously, Susquehanna analyst Charles Minervino upgraded General Dynamics to Positive from Neutral with a price target of $210, up from $200. The analyst said the company has one of the more compelling free cash flow growth stories in the industry. Its free cash flow yield makes it the most inexpensive stocks in the sector and he views the company as being in the final stages of its transition to a high growth business.
Operating margin was 11.5% for the quarter and 10.8% for the full year. The defense segments collectively delivered revenue and operating earnings for the year that were the highest in the company's history. "Our continued focus on operating performance and protecting the health and safety of our employees contributed to strong fourth-quarter and full-year results," said Phebe Novakovic, chairman and CEO. "Furthermore, favorable cash flow has enabled us to continue reducing debt, returning value to shareholders and investing in future growth."