said fourth-quarter earnings surged 76% from a year ago, beating estimates, as the New Jersey technology company continued to find brisk markets for its weapons of war.
DRS earned $28.8 million, or 79 cents a share, in the quarter, compared with $17 million, or 58 cents a share, a year ago. Analysts were forecasting earnings of 75 cents a share in the latest quarter, according to Thomson First Call.
Fourth-quarter revenue rose 79% from a year ago to $645.7 million, wiping out the Wall Street consensus of $595.2 million. Two acquisitions and 29.3% organic growth paced the gain.
The company raised its 2007 earnings estimate to $3.05 to $3.10 a share, including 10 cents to 12 cents a share of stock options expense. Analysts, who normally exclude the options expense, were expecting $3.13 a share for 2006. DRS reiterated revenue guidance of $2.9 billion, consistent with the Wall Street consensus.
"With the strong results reported for fiscal 2006, a funded backlog of orders at year end reaching an all-time high, and the added strength of a significant acquisition completed in the fourth quarter of fiscal 2006, we expect fiscal 2007 to be the company's best year ever," DRS said.
The stock closed at $57.29 Friday, 17.8 times the high end of its adjusted 2007 earnings guidance.