As the Ukraine-Russia war continues, the U.S. is expected to send advanced Abrams tanks to Ukraine. That military staple comes from American aerospace and defense giant
which reported slightly better sales and earnings than expected on Wednesday morning.
The Wall Street Journal has reported that the Biden administration is poised to send a “significant number of Abrams M1 tanks” to Ukraine—adding to the cash, missile launchers, munitions, and other equipment the U.S. has made available—saying an announcement is expected later Wednesday. Multiple other news outlets have issued similar reports.
An Abrams tank weighs about 60 tons and is powered by a 1,500 horsepower gas turbine engine. The cannon has a diameter of almost 5 inches.
reports Abrams sales in its combat systems segment, which generated about $7.3 billion in sales in 2022, flat with 2021 sales. Total sales at the company in 2022 hit $39.4 billion, up from $38.5 billion in 2021.
The company has also provided munitions for the Ukraine war effort.
Shares were up 1.7% in premarket trading. Futures on the
Dow Jones Industrial Average
declined 0.7% and 0.5%, respectively.
Part of the gain in the stock could be the result of General Dynamics’ fourth-quartere earnings. The company said it earned $3.58 a share from sales of $10.9 billion. Wall Street was looking for $3.54 a share from $10.7 billion in sales.
Orders in the company’s aerospace division, which makes Gulf Stream business jets, exceeded sales by about 20%. Aerospace and the marine systems operation, which makes submarines,, are the company’s largest business segments.
The company “ended the year in good shape, particularly with regards to its bookings,” wrote Vertical Research Partners analyst Rob Stallard in a Wednesday report. “The Aerospace division has yet to see bizjet demand slow down, and ended 2022 with a backlog of $19.5 billion…which is more than two times its 2022 revenues.”
He rates shares Buy and has a $300 price target for the stock. Shares closed Tuesday at $235.45.
Overall, 67% of analysts covering General Dynamics rate shares Buy. The average Buy-rating ratio for stocks in the S&P 500 is about 58%. The average analyst price target is about $278 a share.
The tank might come up on General Dynamics earnings conference call, which was slated to start at 9 a.m. Eastern time.
Write to Al Root at firstname.lastname@example.org