Aerospace and defense company General Dynamics Corporation (GD) announced it received a contract worth $187 million from the U.S. Army, which raised the ceiling of the previously awarded contract from the Army to $2.68 billion.
This contract is a part of Common Hardware Systems – 3 program, by which the company provides hardware and software support to the U.S. Army for developing systems network of the defense departments.
As per the new contract, General Dynamics’ operating unit, General Dynamics C4 Systems Inc., will provide hardware systems support to the U.S. Army. C4 Systems focuses on the development, design, manufacturing and integration of secure communication, information and technology solutions. The company intends to do the work from Taunton, Massachusetts and will complete the same by May 30, 2013.
C4 Systems Inc. is a part of General Dynamics’ Information Systems and Technology (IS&T) division. Revenue generated from the IS&T division during the second quarter, 2010, was $2.97 billion, comprising 36.7% of the total revenue. Total backlog from this division at the end of second-quarter 2010 was $10.6 billion out of which $8.6 billion was funded backlog.
The adjusted earnings of General Dynamics for second-quarter 2010 were $1.68 per share versus $1.61 per share at the end of second-quarter 2009. The Zacks Consensus Estimates for third-quarter 2010, fiscal year 2010 and fiscal year 2011 are $1.65 per share, $6.67 per share and $7.05 per share, respectively.
General Dynamics currently retains a Zacks #3 Rank (short-term Hold rating). We maintain our long-tern Neutral rating on the stock.
Based in Falls Church, Virginia, General Dynamics, along with its units operates in business aviation, land and expeditionary combat systems, armaments and munitions, shipbuilding and marine systems as well as information systems and technologies.
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