Aerojet Rocketdyne Holdings, Inc. AJRD reported fourth-quarter 2018 adjusted earnings of 33 cents per share, which missed the Zacks Consensus Estimate of 36 cents by 8.3%. However, on a year-over-year basis, the bottom-line figure improved 43.5% from the year-ago quarter’s tally of 23 cents.Barring one-time adjustments, the company reported GAAP earnings of 29 cents per share, reflecting a massive improvement from a loss of 71 cents incurred in the year-ago quarter. This upside can be attributed to lower cost of sales and increased operating income in the reported quarter.For 2018, the company’s adjusted earnings came in at $1.93 per share, which exceeded the Zacks Consensus Estimate of $1.82 by 6%. The bottom line also improved 89.2% from the year-ago tally.Aerojet Rocketdyne Holdings, Inc. Price, Consensus and EPS Surprise Aerojet Rocketdyne Holdings, Inc. Price, Consensus and EPS Surprise | Aerojet Rocketdyne Holdings, Inc. QuoteOperational PerformanceIn the quarter under review, the company’s revenues of $437.9 million declined 17.1% year over year and also missed the Zacks Consensus Estimate of $500 million by 12.4%.For 2018, the company generated total revenues of $1.90 billion, which fell short of the Zacks Consensus Estimate of $1.96 billion by 3%. Nevertheless, the reported figure increased 5.3% from the prior-year number.Aerojet Rocketdyne’s total backlog at the end of 2018 totaled $4.1 billion, lower than $4.6 billion registered at the end of 2017. Of this, funded backlog amounted to $1.9 billion compared with $2.1 billion at 2017-end.Total operating expenses declined 20.2% to $383.2 million in the fourth quarter. Meanwhile, operating income of $54.7 million improved a solid 14% from $48 million a year ago.Segmental PerformanceAerospace & Defense: Revenues at this segment declined 17.4 % year over year to $434.9 million. The metric was impacted by the adoption of new revenue recognition guidance effective Jan 1, 2018, using the modified retrospective method.The segment margin expanded 490 basis points (bps) to 12.6% on favorable overhead rate performance and cost growth, and manufacturing inefficiencies in the fourth quarter of 2017 on electric propulsion contracts.RealEstate: The segment’s revenues of $3 million outpaced the year-ago quarter’s top-line figure of $1.6 million.Financial UpdateAerojet Rocketdyne exited 2018 with cash and cash equivalents of $735.3 million, up from $535 million as of Dec 31, 2017.Long-term debt amounted to $352.3 million, down from $591.4 million as of Dec 31, 2017.Operating cash flow from continuing operations summed $252.7 million as of Dec 31, 2018, compared with cash flow of $212.8 million in the year-ago period.Free cash flow at the end of 2018 was $209.5 million compared with the year-ago free cash flow of $183.4 million.Zacks RankAerojet Rocketdyne currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.Recent Defense ReleasesLeidos Holdings’ LDOS fourth-quarter 2018 adjusted earnings of $1.10 per share surpassed the Zacks Consensus Estimate of $1.07 by 2.8%.FLIR Systems Inc.’s FLIR fourth-quarter 2018 adjusted earnings of 62 cents per share outpaced the Zacks Consensus Estimate of 60 cents by 3.3%.Hexcel Corporation’s HXL fourth-quarter 2018 adjusted earnings of 82 cents per share exceeded the Zacks Consensus Estimate of 80 cents by 2.5%.Zacks' Top 10 Stocks for 2019In addition to the stocks discussed above, would you like to know about our 10 finest buy-and-holds for the year?Who wouldn't? Our annual Top 10s have beaten the market with amazing regularity. In 2018, while the market dropped -5.2%, the portfolio scored well into double-digits overall with individual stocks rising as high as +61.5%. And from 2012-2017, while the market boomed +126.3, Zacks' Top 10s reached an even more sensational +181.9%.See Latest Stocks Today >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Leidos Holdings, Inc. (LDOS): Free Stock Analysis Report Hexcel Corporation (HXL): Free Stock Analysis Report Aerojet Rocketdyne Holdings, Inc. (AJRD): Free Stock Analysis Report FLIR Systems, Inc. (FLIR): Free Stock Analysis Report To read this article on Zacks.com click here. Zacks Investment Research