Shares of Leonardo DRS, Inc. (NASDAQ: DRS) surged 5.11% on Tuesday after the aerospace and defense company reported robust third-quarter results that exceeded analysts' expectations and raised its full-year guidance, fueling investor optimism about its growth prospects.

For the quarter ended September 30, 2024, Leonardo DRS reported revenue of $812 million, a 15.5% increase from the same period last year and beating the consensus estimate of $775.4 million. The company's adjusted earnings per share (EPS) came in at $0.24, surpassing analysts' expectations of $0.20 and representing a 20% increase from the prior year.

The strong performance was driven by robust bookings, mid-teens organic revenue growth, and healthy profit margins. Leonardo DRS also reported a backlog of $8.26 billion at the end of the quarter, up a staggering 75.1% year-over-year, reflecting strong demand for its products and services.

In addition to the impressive third-quarter results, Leonardo DRS lifted its full-year revenue guidance to a range of $3.15 billion to $3.20 billion, up from its previous estimate of $3.08 billion to $3.18 billion. The company also raised its adjusted EPS guidance to $0.88 to $0.91, compared to the previous range of $0.82 to $0.88.

"We delivered strong third quarter results, highlighted by robust bookings, mid-teens organic revenue growth, increases to all of our key profit metrics and healthy free cash flow generation. Our strategy, execution focus and steadfast commitment to our customers are driving outcomes that continue to exceed our expectations," said Bill Lynn, Chairman and CEO of Leonardo DRS.