General Dynamics Corporation (GD) is one of the largest U.S. defense contractor and is one of the two contractors equipped to build nuclear-powered submarines. The company is well-renowned for the Virginia-class submarines and its Gulfstream aircraft.

However, the company is subject to high risks from budget cuts. As a result, the company is cautious and is proactively involved in lowering costs to fuel bottom line growth.

Earnings Estimate

Investors should also take into account the recent earnings estimate revisions for General Dynamics. The Zacks Consensus estimate has been moving slightly upwards over the last 90 days. Moreover, it does have an impressive history in earnings season. The company has reported positive earnings surprises in the last four quarters with an average beat of 4.91%.

We have mentioned below some of the vital information from this just-revealed announcement:

Earnings Beat

Our consensus called for fourth quarter EPS of $2.10, and the company reported EPS of $2.19 (these figures take out stock option expenses).

Revenue Beat

General Dynamics posted revenues of $8,362 million in fourth quarter, surpassing our consensus estimate of $8,046 million.

Key Developments to Note

Total backlog at the end of 2014 stood at $72.4 billion, up 58% year over year primarily due to higher backlogs at Combat Systems and Marine Systems. Aircraft orders in the quarter were at the highest in more than three years.

Zacks Rank

Currently, General Dynamics has a Zacks Rank #3 (Hold), but that could definitely change following General Dynamics’ earnings report which was just released.