American defense contractor Raytheon Company (NYSE: RTN) posted better-than-expected second quarter earnings and raised its full-year guidance on Thursday, sending the Company’s stock price up as much as 4.2%

Raytheon recorded net sales of USD 7.2 Billion for the second quarter, up 8.1% from the year-quarter earlier. Earnings came in at USD 2.92 per share compared to USD 2.78 in Q2 of 2018. On average, analysts expected to see quarterly earnings of USD 2.64 per share on revenues of USD 7.04 Billion.

The Company reported revenue increases across all segments including: Integrated Defense Systems; Intelligence, Information and Services; Missile Systems; Space and Airborne Systems; and Forcepoint. Raytheon said its Space and Airborne Systems delivered the highest growth at 13% thanks to higher sales of products like missile warning satellites and tactical radars to international customers.

For the full year, the U.S. weapon-maker expects net sales to fall between USD 28.8 Billion to USD 29.3 Billion. A previous forecast anticipated revenue of USD 28.6 Billion to USD 29.1 Billion. Earnings per share are now expected to come in at USD 11.50 to USD11.70, up from USD 11.40 to USD 11.60.

Last month, Raytheon announced it will combine with United Technologies Corp. (NYSE: UTX) to become the second largest aerospace and defense company in the U.S., behind Boeing Co. (NYSE: BA). The all-stock deal is expected to close in the first half of 2020.

"Integration planning for the merger with United Technologies is progressing well, with the integration team developing detailed execution plans to capture revenue and cost synergies rapidly and ensure seamless operations post close,” said Thomas A. Kennedy, Raytheon Chairman and CEO in a statement on Thursday. The combined company is expected to generate annual sales of about USD 74 Billion. Together, United Technologies and Raytheon are currently worth around USD 166 Billion in market value.

Shares of Raytheon have gained 25% this year versus competitors like Lockheed Martin Corp. (NYSE: LMT), up 42%, and Honeywell International (NYSE: HON), up 32%.