Northrop Grumman Corp. raised its forecast for the year after the defense contractor beat first-quarter expectations, thanks to higher aircraft demand and a boost stemming from an accounting change.

The better-than-expected results and boosted guidance for Northrop are the latest in the defense segment. On Tuesday, Lockheed Martin similarly topped expectations and lifted its view and L-3 Communications Holdings Inc. did the same Wednesday morning.

For the year, Northrop Grumman lifted its earnings view to a range of $10.40 to $10.70 a share from earlier guidance of $9.90 to $10.20 a share. The new range is well above the average analyst projection of $10.23 a share. Northrop backed its sales projection of $23.5 billion to $24 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 the latest quarter, higher volume for manned aircraft and autonomous systems programs pushed revenue in its aerospace business 3% higher, to $2.57 billion. The rise in aircraft production was due to a ramp-up on the E-2D program and higher F-35 deliveries, Northrop said.

Higher aerospace systems sales offset declines in the company's mission systems and technology services segments, decreases that came as volume for cyber programs fell and as activity in the Intercontinental Ballistic Missile program wound down.

Overall, Northrop reported a profit of $556 million, or $3.03 a share, up from $484 million, or $2.41 a share, a year earlier. The company said a change to the way it recognizes share-based compensation added 44 cents a share to first-quarter earnings. Lower tax also helped. Adjusted for pensions, per-share profit rose to $2.77 from $2.14.

Revenue was flat at $5.97 billion. Analysts projected $2.49 in adjusted earnings per share and $5.93 billion in sales, according to Thomson Reuters.

Write to Lisa Beilfuss at lisa.beilfuss@wsj.com

 

(END) Dow Jones Newswires

April 27, 2016 08:25 ET (12:25 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
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