Raytheon (RTN) shares were down 5% in trading Thursday after the defense company reported a first-quarter earnings beat driven by higher weapons sales thanks to increased defense spending under President Donald Trump.
The company reported net income of $2.77 per share on revenue of $6.73 billion. Analysts were modeling for earnings of $2.45 per share on revenue of $6.58 billion.
The company also provided full-year earning guidance of between $11.40 and $11.60 per share on revenue between $28.6 billion and $29.1 billion. Analysts surveyed by FactSet expect Raytheon to earn $11.61 per share on revenue of $28.9 billion.
"We delivered strong operating performance in the first quarter with our company bookings, sales, earnings per share and cash flow all ahead of our expectations," said Thomas A. Kennedy, Raytheon chairman and CEO. "The Raytheon team remains focused on driving strong execution and future growth by developing and delivering innovative solutions that address our customers' most complex challenges."
Other defense contractors were also climbing this week on strong earnings.