BA Boeing Co

By Austen Hufford 

Northrop Grumman Corp. upped its forecast for the year and beat Wall Street expectations for the latest quarter as an increase in its aerospace sales bolstered its financial results.

Shares rose 2.5% in light premarket trading.

For the year, Northrop said it now expects earnings per share of between $11.55 and $11.75, compared to between $10.75 and $11 previously. It expects 2016 revenue of between $23.9 billion and $24.1 billion, up from between $23.5 billion and $24 billion previously. Analysts polled by Thomson Reuters had expected earnings per share of $11.05 on revenue of $23.82 billion.

The Falls Church, Va., contractor late last year won a hard-fought contest to build new long-range bombers for the U.S. Air Force, beating out Boeing Co. and Lockheed Martin Corp. for a contract valued at roughly $80 billion. In September, the air force said the bomber would be called the Raider.

In the latest quarter, higher volume for manned aircraft and autonomous systems programs pushed revenue in its aerospace business 9.4% higher to $2.78 billion. Manned aircraft sales rose on higher volumes for classified programs, where the company isn't allowed to disclose more details, and on the F-35 and E-2D aircrafts, partially offset by fewer F/A-18 deliveries. Autonomous systems sales increased on higher volume in the triton and global hawk program, partially offset by lower volume on North Atlantic Treaty Organization alliance ground surveillance as it ramps down. Lower volume on the advanced extremely high frequency program lead to a fall in space sales.

Sales of mission systems fell 0.9% to $2.7 billion on lower volume for sensors and processing programs and advanced capabilities programs, partially offset by higher volume for cyber and ISR programs.

In all, Northrop reported a profit of $602 million, or $3.35 a share, up from $516 million, or $2.75 a share, a year prior. The company said results were impacted by a federal tax benefit of 23 cents and a 20 cent benefit for two unallocated corporate items.

Revenue grew 2.9% to $6.16 billion. Analysts projected $2.81 in adjusted earnings per share and $6.02 billion in sales, according to Thomson Reuters.

Write to Austen Hufford at austen.hufford@wsj.com

(END) Dow Jones Newswires

October 26, 2016 07:33 ET (11:33 GMT)

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