General Dynamics (NYSE:GD) shares popped more than 2% premarket Wednesday on the back of its earnings and revenue beat.
The company posted a third-quarter profit per share of $3.04, $0.12 better than the analyst estimate of $2.92, while revenue for the quarter came in at $10.6 billion, up 6% YoY and above the consensus estimate of $10.05 billion.
The company also reported a "record high" $95.6B backlog, with orders remaining strong across the company with a consolidated book-to-bill ratio of 1.4-to-1 for the quarter.
The company said it continues to see strong demand, with CEO Phebe Novakovic noting "steady revenue growth across the business," resulting in "significant" backlog growth.
Reacting to the report, analysts at TD Cowen said it was an "impressive Q3 beat in all key metrics."
"Investors should be pleased," wrote the analysts, who maintained an Outperform rating and $285 price target on the stock. "Q3 EPS of $3.04 topped our $2.86 est. and Street's $2.92 on revenue of $10.6B (a booming 6% beat; +6% y/y). Ops were 15¢ ahead on a broad Gulfstream beat (+7¢), and volume-driven beats at Combat and Tech (+13¢) but light margins sat Marine (-4¢) generally in line."
The analysts also noted the company's strong defense results on robust volume and healthy defense bookings.