NEW YORK (AP) -- Northrop Grumman Corp. reported better-than-expected third-quarter profit and raised its guidance for the year, a day after winning a contract worth up to $80 billion to build new bombers for the Air Force.
Profit rose 9 percent to $516 million, or $2.75 per share. The Falls Church, Virginia-based company said earnings, adjusted for non-recurring gains, came to $2.41 per share.
The results topped Wall Street expectations. The average estimate of nine analysts surveyed by Zacks Investment Research was for earnings of $2.21 per share.
The defense contractor reported flat revenue of $5.98 billion, also surpassing Street forecasts. Four analysts surveyed by Zacks expected $5.84 billion.
The company boosted its full-year earnings outlook to a range of $9.70 to $9.80 per share from prior guidance of $9.55 to $9.70 per share. It narrowed its revenue guidance to between $23.6 billion and $23.8 billion. Previously, the low end of that range was $23.4 billion.
The Air Force, under its contract with Northrop, will buy 100 of the new bombers at a newly calculated average cost of $564 million each. The contract awarded is for an initial set of 21 planes, plus $23.5 billion in engineering and development costs. The estimated total cost to develop and purchase the full fleet would be $80 billion.
Northrop shares climbed $11.27, or 6.2 percent, to $191.87 in premarket trading about two hours before the market opening. Its shares have risen 23 percent since the beginning of the year, while the Standard & Poor's 500 index has stayed nearly flat. The stock has increased 38 percent in the last 12 months.
Elements of this story were generated by Automated Insights (http://automatedinsights.com/ap) using data from Zacks Investment Research. Access a Zacks stock report on NOC at http://www.zacks.com/ap/NOC
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