Northrop Grumman Corp raised its full-year sales and earnings outlook as the U.S. weapon maker’s quarterly results topped estimates on Thursday, helped by higher demand for its nuclear programs and missile-warning radars.
Shares were up slightly in pre-market trading on Thursday to $340.
U.S. President Joe Biden has proposed a flat defense budget for 2022, despite calls from progressive Democrats to cut Pentagon spending, removing a potential hurdle to profits at defense companies, including Northrop.
“Our team booked competitive new awards and generated higher sales, earnings and cash,” Chief Executive Officer Kathy Warden said in a statement.
Northrop said it now expects full-year adjusted earnings per share between $24 and $24.50, up from its prior range of $23.15 to $23.65, and above analysts’ average estimate of $23.65, according to IBES data from Refinitiv.
The company raised it 2021 sales outlook to between $35.3 billion and $35.7 billion from $35.1 billion to $35.5 billion.