Northrop forecasts 2017 earnings below estimates

REUTERS - U.S. weapons maker Northrop Grumman Corp reported a 14.4 percent rise in quarterly profit on Thursday, but forecast 2017 earnings per share below analysts' estimates.

Northrop, which makes the center sections for F-35 fighter jets, forecast 2017 earnings of $11.30-$11.60 per share and sales of about $25 billion.

Analysts on average had expected earnings of $12.23 per share and revenue of $25.03 billion, according to Thomson Reuters I/B/E/S.

The company's results come two days after the main contractor for the F-35 program, Lockheed Martin Corp, said it delivered fewer F-35s than forecast in 2016.

President Donald Trump has criticized the F-35 program as being too expensive.

 

Northrop's net earnings rose to $525 million, or $2.96 per share, in the fourth quarter ended Dec. 31, from $459 million, or $2.49 per share, a year earlier.

Total sales rose to $6.40 billion from $5.69 billion.

The company's shares were little changed at $229.50 in premarket trading.

(Reporting by Ankit Ajmera in Bengaluru; Editing by Savio D'Souza and Martina D'Couto)