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Northrop Grumman (NYSE:NOC) touched a fresh record hight after the maker of the stealth B-2 bomber won a $21.4bn contract from the Pentagon to develop and build a next-generation long-range strike bomber.
Shares of the Falls Church, Virginia-based company rose 6.2% to $191.82 at 11:22 a.m. in New York. The stock has rallied 30% so far this year.
Analysts say the deal could be valued at up to $80bn if the U.S. Air Force buys all 100 stealth bombers now planned.
The announcement by the US Department of Defence ended months of anticipation and marked the biggest contract award by the Pentagon in over a decade.
The bomber is slated to be ready for initial combat use by 2025.
Hours after winning the multibillion-dollar contract, Northrop reported higher-than-expected quarterly revenues and earnings and boosted its profit outlook for the full year.
Northrop reported a 9% rise in third-quarter profit to $516mln, or $2.75 per diluted share, from $473mln, or $2.26 per share a year earlier.
Revenue edged up to $5.99bn from $5.98bn.
Northrop raised its outlook for full-year earnings per share to $9.70 to $9.80, up from $9.55 to $9.70.