Company Description

Nash Finch Company is one of the largest food distribution companies in the United States. Its business consists of three primary operating segments. The wholesale distribution segment supplies food and non-food items to independently owned retail grocery stores, corporately owned retail grocery stores and institutional customers.

Its retail segment is made up of corporately owned retail grocery stores with a variety of store formats. The military distribution segment, which supplies food and related products to military commissaries.

Estimates Climb After Quarterly Report

Total sales of $1.44 billion were announced during the company's third-quarter earnings announcement on Nov 6. Sales rose 5.1% on a year-over-year basis, up from $1.38 billion.

Earnings per share came in lower than the third quarter of 2007 due to non-cash LIFO charges, but those number were also inflated last year due to one-time tax savings. Adjusted earnings per share came in at $1.00, 12.4% higher than the consensus estimate of 89 cents.

Since the earnings announcement, full-year estimates have climbed from $3.17 to $3.28 for the current year. Estimates for 2009 are now averaging $3.84, up from $.3.68 over the same period of time.

Expanding Distribution

On Dec 18 the company announced the acquisition of GSC Enterprises, Inc, a Texas based food distribution company. The deal will be an $80 million all-cash transaction.

Alec Covington, president and CEO of Nash Finch said "This acquisition extends our commitment to serving the U.S. military and will bolster our ability to serve our existing customers and attract new customers in the southern and Midwest regions of the United States by utilizing GSC's successful supply network."

The Chart

Shares have been volatile over the past few months. Currently the stock is pulling back which could provide a good entry point once they stabilize. Take a look below.

"NAFC" Free Stock Analysis: Buy? Sell? Hold?
Zacks Investment Research

Company Description

General Dynamics operates in four main business segments. Aerospace designs, develops, manufacturers and services a comprehensive offering of advanced business-jet aircraft. Combat Systems is a global leader in producing, supporting and sustaining land and expeditionary combat systems for the U.S. military and its allies. Marine Systems designs, builds and supports submarines and a variety of surface ships for the U.S. Navy and commercial customers. The Information Systems and Technology group offers a breadth and depth of technology and service capabilities that support a wide range of government and commercial needs, including systems integration expertise; hardware and software products; and engineering, management and support services.

Read the latest Zacks Equity Research Report on GD.

A Recent Contract

A subsidiary of General Dynamics, Bath Iron Works, received an additional $45.8 million contract from the Navy for servicing the Zumwalt class destroyer program.

Rising Estimates

Analysts have earnings pegged at $6.18 per share for the 2008 year, up from last month's $6.15. For the following year, Wall Street is forecasting $6.80 per share, an increase from last month's $6.76. The most accurate projections are $6.20 per share for 2008 and $6.81 for 2009.

A Solid Quarter

The company posted third-quarter results in late October. Earnings per share of $1.59 topped the year-prior $1.34 and exceeded analyst estimates by 7%. Revenues jumped 4.5% to $7.1 billion on a year-over-year basis.

Management said sales in the third quarter increased in the Aerospace, Marine Systems and Information Systems and Technology groups when compared to the year-ago period, adding that the company saw substantial backlog growth in Combat Systems.

“This was a powerful quarter for General Dynamics,” said company Chairman and Chief Executive Officer Nicholas D. Chabraja. “As the company's core defense programs demonstrated their continued strength and the market for business-jet aircraft drove the Aerospace backlog to its highest level ever, we improved margins company-wide and generated substantial cash by maintaining our focus on solid execution.
"GD" Free Stock Analysis: Buy? Sell? Hold?
Zacks Investment Research

Obama and Medvedev would do well early in their relationship to make some policy decisions that would sharply break with Cold War patterns. For example, although Obama would not have assumed command of the U.S. military when Russia's naval flotilla completes its exercises off Venezuela in mid-November, he could suggest that the Pentagon invite the Russian commanders to stop off at Central Command in Florida before their return to Russia. The purpose of the stop would be to discuss urgent issues that are engaging both navies, such as the piracy that is running rampant off Somalia. And Medvedev, although he would have to push back against Kremlin hard-liners, could recommend that Moscow and Washington have some urgent issues to work on together with Tbilisi. Smuggling through South Ossetia has been a persistent problem, and it has at times involved that most dangerous of contraband -- fissile material that could be used to make nuclear bombs. Both Georgia and Russia have cooperated with the United States to build defenses against nuclear smuggling, and all three could cooperate to confront this terrible problem. These two examples show clearly what must be done to get beyond the Cold War. They convey that Russia and the United States can cooperate rather than compete, even in their own backyards. Since Obama and Medvedev are so clearly of a new generation, they are the leaders who may finally succeed in breaking the old patterns.

Company Description

General Dynamics provides business aviation; land and expeditionary combat vehicles and systems, armaments, and munitions; shipbuilding and marine systems; and mission-critical information systems and technologies.

The company operates in four main business segments. Aerospace designs, develops, manufacturers and services a comprehensive offering of advanced business-jet aircraft. Combat Systems is a global leader in producing, supporting and sustaining land and expeditionary combat systems for the U.S. military and its allies. Marine Systems designs, builds and supports submarines and a variety of surface ships for the U.S. Navy and commercial customers. The Information Systems and Technology group offers a breadth and depth of technology and service capabilities that support a wide range of government and commercial needs, including systems integration expertise; hardware and software products; and engineering, management and support services.

A Recent Contract

The company’s most recent contract win was a $41 million contract modification from the U.S. Marine Corps System Command for the production of nine capability set II Combat Operations Centers and 18 common modules.

Income

In early August, the company declared a regular quarterly dividend of 35 cents per share. GD noted that the dividend is payable November 14 to shareholders of record on October 10.

Quarterly Results Reflect Growth

General Dynamics posted stellar second-quarter results in late July. Revenue was up 10.8% from last year to $7.3 billion. Earnings per share of $1.60 topped the consensus estimate by 12% and improved on the year-prior $1.27.

“General Dynamics’ performance continued to be strong in the second quarter of 2008,” said Nicholas D. Chabraja, chairman and chief executive officer. “Sales, earnings and operating margins increased in all four business segments compared to the year-ago period, cash generation was exceptionally strong and the robust backlog suggests continued healthy demand for the products and services of each business area.”

More Growth Forecasted for the Future

Wall Street is upbeat on the company’s future. Full-year earnings estimates of $6.08 per share climbed from $5.89 over the past 60 trading days. For the 2009 year, forecasts were bumped up by a penny to $6.71 per share over the past week. Two months ago, 2009 projections were $6.52.
"GD" Free Stock Analysis: Buy? Sell? Hold?
Zacks Investment Research