Business is booming at L3Harris Technologies.

On Wednesday evening, the defense contractor reported better-than-expected earnings and raised its full-year financial guidance. For the quarter, L3 reported earnings per share of $3.13 from sales of $5.9 billion. Wall Street was looking for earnings per share of $2.80 from sales of $5.8 billion. A year ago, it reported $2.78 and $5.4 billion, respectively.

For the full year, L3Harris now expects sales between $23.2 billion and $23.7 billion, and earnings per share of between $11.80 and $12. Prior guidance was $23 billion to $23.5 billion, with EPS $11.40 to $11.60. Wall Street currently projects $23.6 billion and $11.63, respectively.

Shares were up 3.3% in after-hours trading at $307.47. Shares dropped 2.5% in regular trading on a difficult day for the market. The S&P 500 and Dow Jones Industrial Average fell 1.5% and 2.2%, respectively.

Sales and earnings are growing, and orders were $7.3 billion, larger than sales, with a backlog up to $42 billion, from $40.7 billion a year ago.

Things are going in the right direction. Still, through Wednesday trading, L3Harris stock was up just 1% for the year.

That's despite big developments in the company's missile business. It recently announced agreements to triple production of solid-rocket motors for Patriot interceptor missiles, and quadruple production of propulsion systems for THAAD (Terminal High Altitude Area Defense) missiles.

Defense stocks just haven't been in favor since the war in Iran began. L3Harris stock was down 18% since then, through Wednesday trading. Northrop Grumman and Lockheed Martin stocks were down 18% and 26%, respectively.

Fighting, in theory, should help defense stocks, leading to higher defense spending, but annual defense outlays are already north of $1 trillion in the U.S., and the war in Iran has raised the odds of a Democratically controlled House of Representatives. Investors fear that could pressure spending growth.

Still, there is growth in things such as unmanned systems and missiles. And L3Harris makes parts for missiles.