General Dynamics (GD) reported strong earnings and revenue growth for Q4 2007. Earnings from continuing operations grew 24.8 percent, with revenues increasing 15.
Sounds good, and investors should be happy with this. When you start to read the company's commentary all you get is an elevator style analysis. 'This is up. That is down.' 'This is better, that was sold and no longer counts.'
Admittedly, General Dynamics does provide several charts and tables providing some numerical detail about margins, sales and net earnings by division. But there is little qualitative commentary. Essentially, we are asked to accept that they sold some tanks and marine systems and other munitions or related products and that the margins are all going up. 'Here is the dividend, we’ll see you in 90 days for the next quarter.'
The press release is much too abbreviated and one would hope that the all important conference call which occurs several hours later does not reveal significantly more information.
