(Reuters) - L3Harris raised the lower end of its annual profit and revenue forecasts on Thursday, betting on sustained weapons demand and robust defense spending amid escalating global security concerns.
Shares rose 3.6% after the bell.
Geopolitical tensions have benefited arms manufacturers such as Lockheed Martin (NYSE:LMT) , RTX, and Northrop Grumman (NYSE:NOC), all of which also raised their 2024 earnings forecasts.
The company now expects 2024 adjusted profit to range between $12.95 to $13.15 per share, up from its previous estimate ranging $12.85 - $13.15 per share.
Revenue for the year is now expected to range between $21.1 billion to $21.3 billion, up from its previous forecast range of $21.0 billion to $21.3 billion.
The ongoing war in Ukraine has fueled strong demand for U.S. weaponry globally, with nations actively negotiating and striking deals to acquire arms and seeking to expedite ongoing contracts.
L3Harris and Northrop are the top two companies that supply sought-after rocket motors, used in guided multiple-launch rocket systems, which have played a crucial role in supporting Ukraine's defense efforts against Russian forces.
For the quarter ended September 27, L3Harris posted adjusted profit of $3.34 per share, beating analysts' estimates of $3.26 per share, according to LSEG compiled data.
The Florida-based company's overall quarterly sales rose 8% to $5.29 billion, compared with analysts' estimate of $5.28 billion.