By Dave Sebastian 

Two of the largest aerospace-and-defense companies raised their profit outlooks for the year after second-quarter results that beat expectations.

Northrop Grumman Corp. logged a profit of $861 million, a 9.1% rise from the same quarter last year. Per-share earnings were $5.06. Analysts polled by FactSet expected $4.68 a share.

Shares in the company were up 3.8% at midday.

Overall sales at Northrop Grumman increased 19% from a year earlier to $8.46 billion.

Its aerospace-systems business booked $3.39 billion in sales, up 1.6%, partly driven by increased production of the F-35 fighter jet. Sales in innovation systems more than tripled from last year to $1.5 billion, as the company sold more military-aerospace structures, launch vehicles and tactical missiles.

The company said its backlog rose 10% to $63 billion.

For the full year, Northrop Grumman expects adjusted earnings per share of $19.30 to $19.55, up from the company's previous outlook of $18.90 to $19.30.

General Dynamics Corp. reported a profit of $806 million, up 2.5% from a year earlier. Earnings were $2.77 a share. Analysts expected $2.68 a share. Shares were up less than 1% at midday.

Revenue at General Dynamic rose 4% to $9.56 billion. Its aerospace segment recorded $2.14 billion in revenue, up 13%. Sales for its combat-, mission- and marine-systems segments also rose, though information-technology sales declined.

General Dynamics said its backlog totaled $67.65 billion, up 2.1% from the same quarter last year.

General Dynamics boosted its profit guidance to a range of $11.85 to $11.90 a share, compared with the previous midpoint of $11.65 and a consensus of $11.76.

 

(END) Dow Jones Newswires

July 24, 2019 12:45 ET (16:45 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.
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