Aerospace and defense company Leonardo DRS (NASDAQ:DRS) will be reporting results tomorrow before the bell. Here’s what investors should know.

Leonardo DRS beat analysts’ revenue expectations by 10.7% last quarter, reporting revenues of $753 million, up 19.9% year on year. It was an incredible quarter for the company, with an impressive beat of analysts’ earnings and EBITDA estimates.

Is Leonardo DRS a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Leonardo DRS’s revenue to grow 10.3% year on year to $775.4 million, in line with the 10.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.19 per share.

The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Leonardo DRS has missed Wall Street’s revenue estimates twice over the last two years.

Looking at Leonardo DRS’s peers in the defense contractors segment, some have already reported their Q3 results, giving us a hint as to what we can expect. CACI delivered year-on-year revenue growth of 11.2%, beating analysts’ expectations by 7%, and RTX reported revenues up 49.2%, topping estimates by 1.4%. CACI traded up 5.4% following the results while RTX’s stock price was unchanged.

Read our full analysis of CACI’s results here and RTX’s results here.

Investors in the defense contractors segment have had steady hands going into earnings, with share prices flat over the last month. Leonardo DRS’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $30.75 (compared to the current share price of $28.01).

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