Northrop Grumman beats profit estimates, raises forecast

Reuters
A U.S. Navy Northrop Grumman E-2 Hawkeye prepares to land on the runway of the U.S. Navy aircraft carrier USS George Washington, during a tour of the ship in the South China Sea November 7, 2013. REUTERS/Tyrone Siu

(Reuters) - Northrop Grumman Corp <NOC.N>, the maker of Global Hawk surveillance planes, reported a better-than-expected quarterly profit, helped by increased demand for its fighter jets.

The No.3 U.S. weapons maker also raised its 2016 earnings forecast to $10.40-$10.70 per share from $9.90-$10.20.

Northrop's results come a day after larger rival Lockheed Martin Corp <LMT.N> also raised its 2016 forecast and reported better-than-expected quarterly sales, benefiting from its acquisition of helicopter maker Sikorsky Aircraft.

Revenue at Northrop's aerospace systems, which makes manned aircraft, drones and space craft, increased 3 percent in the first quarter ended March 31. The business accounted for about 43 percent of total revenue.

Total sales were nearly flat at $5.96 billion, but beat analysts average estimate of $5.93 billion, according to Thomson Reuters I/B/E/S.

The company's net income rose nearly 15 percent to $556 million, or $3.03 per share. Excluding items, it earned $2.59 per share, comfortably beating analysts estimates of $2.49.

Federal and foreign income tax expense fell 45.5 percent to $120 million.

Up to Tuesday's close, Northrop's stock had risen 7.8 percent in value this year.

(Reporting by Sweta Singh in Bengaluru; Editing by Savio D'Souza)