General Dynamics Corporation’s (GD) Information Technology business unit has been awarded a contract under the U.S. Department of Justice's Information Technology Support Services 4 (ITSS4) program. The multiple-award, indefinite delivery, indefinite quantity contract has a maximum potential value of $ 1.1 billion spread over seven years.
Under the contract, General Dynamics will provide systems development lifecycle support to the Department of Justice's IT systems and equipment. All Department of Justice agencies are eligible to purchase services under the ITSS4 contract. Services available include systems integration, IT planning, program management support, applications development, systems and information engineering, web development and information and cyber security.
Based in Falls Church, Virginia, General Dynamics is one of the leading companies in business aviation, information systems and technologies, shipbuilding and marine systems, and land and amphibious combat systems, as well as armaments and munitions.
General Dynamics is slated to release its earnings for the first quarter of fiscal 2011 on April 27, 2011. The Zacks Consensus Estimate for the first quarter is $ 1.62, representing a year-over-year increase of 4.95%. The Zacks Consensus Estimate for fiscal 2011 is $ 7.13, up 4.60%. General Dynamics has had a consistent track record with regard to surpassing earnings estimates in the last four quarters with a trailing four-quarter average of 3.15%.
General Dynamics is the fourth largest U.S. defense contractor in terms of revenue in fiscal 2010 after The Boeing Company (BA), Lockheed Martin Corporation (LMT) and Northrop Grumman Corporation (NOC). We view General Dynamics as a well-run company that is likely to continue delivering on expectations, driven by revenue growth, margin expansion and cash flow generation.
However, an uncertain political stance makes future defense budgets vulnerable to cutbacks. Additionally, the falling order backlog is a headwind for the company.
General Dynamics presently retains a short-term Zacks #3 Rank (Hold) that corresponds with our long-term Neutral recommendation on the stock.
BOEING CO (BA): Free Stock Analysis Report
GENL DYNAMICS (GD): Free Stock Analysis Report
LOCKHEED MARTIN (LMT): Free Stock Analysis Report
NORTHROP GRUMMN (NOC): Free Stock Analysis Report
Zacks Investment Research
Be the first to comment