Raytheon Posts Gains, Raises Outlook

Defense contractor Raytheon(RTN Quote) posted a 14% jump in first-quarter profit on better sales across missiles, radars and defense electronics.

The company also raised its full-year outlook, a move bolstered by Defense Secretary Robert Gates' proposed $534 billion budget for military spending, a 4% increase from last year. Raytheon now expects earnings in the range of to $4.55 to $4.70 a share, up from $4.45 to $4.60 a share.

In response, shares were up 6% to $43.67 in morning trading.

During the first quarter earnings reached $460 million, or $1.11 a share, from $399 million, or 92 cents a share, during the same period last year. Analysts were expecting earnings of $1 a share.

Sales rose 10% to $5.9 billion from $5.4 billion.

Chief Financial Officer David Wajsgras said in a statement that he believes the company could benefit from the growing focus in areas like missile defense systems and intelligence work.