Phebe Novakovic Has Kept General Dynamics a Step Ahead of Peers -- Barrons.com

Dow Jones06-22

By Al Root

Running a defense prime contractor is far from easy. There are constant fears about government spending and complaints about cost overruns. More recently, the industry has grappled with an insidious mix of higher-than-expected inflation and fixed-price contracts, which can ravage profit margins.

General Dynamics has weathered these challenges well under Phebe Novakovic, 66, a former case officer at the CIA, and been a steady performer. In the past two years, the company's profit margins have averaged about 10%, down less than two percentage points from prepandemic, pre-inflation levels in 2019. That's the smallest decline among defense-industry peers.

Meanwhile, the stock has outperformed peers over the past five years.

Novakovic "focuses on the business, and if the business does well, then the share price will look after itself," says Rob Stallard, an analyst at Vertical Research Partners.

Write to Al Root at allen.root@dowjones.com

This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.

(END) Dow Jones Newswires

June 21, 2024 12:00 ET (16:00 GMT)

Copyright (c) 2024 Dow Jones & Company, Inc.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap

Leave a comment

{"i18n":{"language":"en_US"},"isChannel":false,"data":{"share":"https://ttm.financial/m/news/2445644977?lang=en_US&edition=fundamental","thumbnail":"","is_english":true,"pubTime":"2024-06-22 00:00","share_image_url":"https://static.laohu8.com/e9f99090a1c2ed51c021029395664489","id":"2445644977","market":"nz","top_or_hot":-1,"title":"Phebe Novakovic Has Kept General Dynamics a Step Ahead of Peers -- Barrons.com","media":"Dow Jones","content":"<font class=\"NormalMinus1\" face=\"Arial\">\n<p>\n  By Al Root \n</p>\n<p>\n  Running a defense prime contractor is far from easy. There are constant fears about government spending and complaints about cost overruns. More recently, the industry has grappled with an insidious mix of higher-than-expected inflation and fixed-price contracts, which can ravage profit margins. \n</p>\n<p>\n     General Dynamics has weathered these challenges well under Phebe Novakovic, 66, a former case officer at the CIA, and been a steady performer. In the past two years, the company's profit margins have averaged about 10%, down less than two percentage points from prepandemic, pre-inflation levels in 2019. That's the smallest decline among defense-industry peers. \n</p>\n<p>\n     Meanwhile, the stock has outperformed peers over the past five years. \n</p>\n<p>\n     Novakovic \"focuses on the business, and if the business does well, then the share price will look after itself,\" says Rob Stallard, an analyst at Vertical Research Partners. \n</p>\n<p>\n     Write to Al Root at allen.root@dowjones.com \n</p>\n<p>\n     This content was created by Barron's, which is operated by Dow Jones &amp; Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal. \n</p>\n<pre>\n \n</pre>\n<p>\n  (END) Dow Jones Newswires\n</p>\n<p>\n  June 21, 2024 12:00 ET (16:00 GMT)\n</p>\n<p>\n  Copyright (c) 2024 Dow Jones &amp; Company, Inc.\n</p>\n</font>","source":null,"html":"<!DOCTYPE html>\n<html>\n<head>\n<meta http-equiv=\"Content-Type\" content=\"text/html; charset=utf-8\" />\n<meta name=\"viewport\" content=\"width=device-width,initial-scale=1.0,minimum-scale=1.0,maximum-scale=1.0,user-scalable=no\"/>\n<meta name=\"format-detection\" content=\"telephone=no,email=no,address=no\" />\n<title>Phebe Novakovic Has Kept General Dynamics a Step Ahead of Peers -- Barrons.com</title>\n<style type=\"text/css\">\na,abbr,acronym,address,applet,article,aside,audio,b,big,blockquote,body,canvas,caption,center,cite,code,dd,del,details,dfn,div,dl,dt,\nem,embed,fieldset,figcaption,figure,footer,form,h1,h2,h3,h4,h5,h6,header,hgroup,html,i,iframe,img,ins,kbd,label,legend,li,mark,menu,nav,\nobject,ol,output,p,pre,q,ruby,s,samp,section,small,span,strike,strong,sub,summary,sup,table,tbody,td,tfoot,th,thead,time,tr,tt,u,ul,var,video{ font:inherit;margin:0;padding:0;vertical-align:baseline;border:0 }\nbody{ font-size:16px; line-height:1.5; color:#999; background:transparent; }\n.wrapper{ overflow:hidden;word-break:break-all;padding:10px; }\nh1,h2{ font-weight:normal; line-height:1.35; margin-bottom:.6em; }\nh3,h4,h5,h6{ line-height:1.35; margin-bottom:1em; }\nh1{ font-size:24px; }\nh2{ font-size:20px; }\nh3{ font-size:18px; }\nh4{ font-size:16px; }\nh5{ font-size:14px; }\nh6{ font-size:12px; }\np,ul,ol,blockquote,dl,table{ margin:1.2em 0; }\nul,ol{ margin-left:2em; }\nul{ list-style:disc; }\nol{ list-style:decimal; }\nli,li p{ margin:10px 0;}\nimg{ max-width:100%;display:block;margin:0 auto 1em; }\nblockquote{ color:#B5B2B1; border-left:3px solid #aaa; padding:1em; }\nstrong,b{font-weight:bold;}\nem,i{font-style:italic;}\ntable{ width:100%;border-collapse:collapse;border-spacing:1px;margin:1em 0;font-size:.9em; }\nth,td{ padding:5px;text-align:left;border:1px solid #aaa; }\nth{ font-weight:bold;background:#5d5d5d; }\n.symbol-link{font-weight:bold;}\n/* header{ border-bottom:1px solid #494756; } */\n.title{ margin:0 0 8px;line-height:1.3;color:#ddd; }\n.meta {color:#5e5c6d;font-size:13px;margin:0 0 .5em; }\na{text-decoration:none; color:#2a4b87;}\n.meta .head { display: inline-block; overflow: hidden}\n.head .h-thumb { width: 30px; height: 30px; margin: 0; padding: 0; border-radius: 50%; float: left;}\n.head .h-content { margin: 0; padding: 0 0 0 9px; float: left;}\n.head .h-name {font-size: 13px; color: #eee; margin: 0;}\n.head .h-time {font-size: 11px; color: #7E829C; margin: 0;line-height: 11px;}\n.small {font-size: 12.5px; display: inline-block; transform: scale(0.9); -webkit-transform: scale(0.9); transform-origin: left; -webkit-transform-origin: left;}\n.smaller {font-size: 12.5px; display: inline-block; transform: scale(0.8); -webkit-transform: scale(0.8); transform-origin: left; -webkit-transform-origin: left;}\n.bt-text {font-size: 12px;margin: 1.5em 0 0 0}\n.bt-text p {margin: 0}\n</style>\n</head>\n<body>\n<div class=\"wrapper\">\n<header>\n<h2 class=\"title\">\nPhebe Novakovic Has Kept General Dynamics a Step Ahead of Peers -- Barrons.com\n</h2>\n\n<h4 class=\"meta\">\n\n\n2024-06-22 00:00 GMT+8&nbsp;&nbsp;&nbsp;<a href=https://dowjonesnews.com/newdjn/logon.aspx?AL=N><strong>Dow Jones</strong></a>\n\n\n</h4>\n\n</header>\n<article>\n<div>\n<p>By Al Root \n\n\n  Running a defense prime contractor is far from easy. There are constant fears about government spending and complaints about cost overruns. More recently, the industry has grappled ...</p>\n\n<a href=\"https://dowjonesnews.com/newdjn/logon.aspx?AL=N\">Source Link</a>\n\n</div>\n\n\n</article>\n</div>\n</body>\n</html>\n","isBrief":false,"type":0,"news_type":1,"symbol":"ROOT","symbol_name":"Root, Inc.","start_time":0,"source_url":"https://dowjonesnews.com/newdjn/logon.aspx?AL=N","article_id":"2445644977","we_media_id":"106","thumbnails":[],"rights":null,"url":"https://stock-news.laohu8.com/highlight/detail?id=2445644977","pubTimestamp":1718985600,"sourceInfo":null,"weMediaInfo":{"media_name":"Dow Jones","introduction":"Dow Jones publishes the world’s most trusted business news and financial information in a variety of media.","home_visible":0,"id":"106","head_image":"https://static.tigerbbs.com/150f88aa4d182df19190059f4a365e99"},"summary":"Running a defense prime contractor is far from easy. There are constant fears about government spending and complaints about cost overruns. More recently, the industry has grappled with an insidious mix of higher-than-expected inflation and fixed-price contracts, which can ravage profit margins.General Dynamics has weathered these challenges well under Phebe Novakovic, 66, a former case officer at the CIA, and been a steady performer. In the past two years, the company's profit margins have averaged about 10%, down less than two percentage points from prepandemic, pre-inflation levels in 2019. That's the smallest decline among defense-industry peers.Meanwhile, the stock has outperformed peers over the past five years.Novakovic \"focuses on the business, and if the business does well, then the share price will look after itself,\" says Rob Stallard, an analyst at Vertical Research Partners.This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published ind","collect":0,"end_time":0,"defaultTopTitle":"","property":[],"viewcount":null,"language":"en","relate_stocks":{"ROOT":"Root, Inc.","BK4550":"红杉资本持仓","BK4187":"航天航空与国防","BK4566":"资本集团","LU0170899867.USD":"EASTSPRING INVESTMENTS WORLD VALUE EQUITY  \"A\" (USD) ACC","GD":"通用动力","BK4551":"寇图资本持仓","BK4585":"ETF&股票定投概念","BK4505":"高瓴资本持仓","BK4107":"财产与意外伤害保险","BK4588":"碎股"},"translate_title":"菲比·诺瓦科维奇(Phebe Novakovic)让通用动力公司领先同行一步——Barrons.com","themeId":null,"isJumpTheme":false,"ttsUrl":null,"symbols_score_info":{"GD":0.9,"ROOT":0.62},"content_text":"By Al Root \n\n\n  Running a defense prime contractor is far from easy. There are constant fears about government spending and complaints about cost overruns. More recently, the industry has grappled with an insidious mix of higher-than-expected inflation and fixed-price contracts, which can ravage profit margins. \n\n\n     General Dynamics has weathered these challenges well under Phebe Novakovic, 66, a former case officer at the CIA, and been a steady performer. In the past two years, the company's profit margins have averaged about 10%, down less than two percentage points from prepandemic, pre-inflation levels in 2019. That's the smallest decline among defense-industry peers. \n\n\n     Meanwhile, the stock has outperformed peers over the past five years. \n\n\n     Novakovic \"focuses on the business, and if the business does well, then the share price will look after itself,\" says Rob Stallard, an analyst at Vertical Research Partners. \n\n\n     Write to Al Root at allen.root@dowjones.com \n\n\n     This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal. \n\n\n \n\n\n  (END) Dow Jones Newswires\n\n\n  June 21, 2024 12:00 ET (16:00 GMT)\n\n\n  Copyright (c) 2024 Dow Jones & Company, Inc.","kind":null,"is_publish_news":true,"is_publish_highlight":false,"is_publish_live":null,"is_publish_wemedia":null,"editions":null,"column":"","sentiment":"","news_tag":"","news_rank":0,"symbols":[],"gpt_button":1},"commentList":[],"isCommentEnd":true,"newsSizeData":{"likeSize":0,"commentSize":0,"repostSize":0,"favoriteSize":0,"likeStatus":false,"favoriteStatus":false},"APP":{"userAgent":"Mozilla/5.0 AppleWebKit/537.36 (KHTML, like Gecko; compatible; ClaudeBot/1.0; +claudebot@anthropic.com)","isDev":false,"isTTM":true,"deviceId":"web-server-community-laohu8-v3","version":"4.24.2","shortVersion":"4.24.2","platform":"web","vendor":"web","appName":"ttm","isIOS":false,"isAndroid":false,"isTiger":false,"isTHS":false,"isWeiXin":false,"isWeiXinMini":false,"isWeiBo":false,"isQQ":false,"isBaiduSwan":false,"isBaiduBox":false,"isDingTalk":false,"isToutiao":false,"isOnePlus":false,"isHuaWei":false,"isXiaomi":false,"isXiaomiWebView":false,"isOppo":false,"isVivo":false,"isSamsung":false,"isMobile":false},"href":"/m/news/2445644977"}