| ($ millions) | 2Q16 | 2Q15 | Change | % Change |
| Revenue | 7,665 | 7,882 | (217) | -3 |
| Earnings | 1,070 | 1,081 | (11) | -1 |
| Net Income | 758 | 752 | 6 | 1 |
| Earnings per Share | 2.44 | 2.27 | 0.17 | 7.49 |
| Operating Margin | 14.0 | 13.7 | ||
| Tax Rate | 27.7 | 29.1 | ||
| Share Count | 310 | 331 | (21) | -6 |
General Dynamics Corp. (NYSE:GD) reported strong growth in EPS for the second quarter of 2016 (2Q16) despite softening revenue. The improvement in profitability reflected margin expansion for most business segments, a lower tax rate and significant share repurchases. These favorable movements were partially offset by a decrease in revenue. Since GD trades at only 16 times trailing earnings, investors should not be too concerned about the decline in revenue. Instead, value based investors should strongly consider adding GD to their portfolio.
