UPDATE 2-Northrop Grumman boosts full-year profit view

* Q1 EPS $1.17 vs. estimate $1.07

* Full-year EPS forecast raised to $4.65-$4.90

* Shares up modestly

(Adds analyst note, estimates, stock prices)

ATLANTA, April 22 (Reuters) - Northrop Grumman Corp (NOC.N) reported better-than-expected first-quarter profit on Wednesday on higher sales and improved performance in its shipbuilding segment, and the defense contractor boosted its full-year earnings forecast.

Net earnings for the maker of warships and military electronics rose 47 percent to $389 million, or $1.17 a diluted share, from $264 million, or 76 cents a share, a year earlier.

Analysts expected profit of $1.07 a share, according to Reuters Estimates.

Sales rose 8 percent to $8.3 billion.

Across segments, the shipbuilding business posted operating income of $84 million against a year-earlier loss of $218 million. The four other major divisions had operating income increases.

"This was an especially strong quarter from Northrop, with all five segments hitting on all cylinders," Macquarie Research analyst Rob Stallard said in a research note. "The lack of execution hiccups or write-downs that had marred the company in the past should come as a relief in our view."

Los Angeles-based Northrop Grumman forecast full-year profit of $4.65 to $4.90 a share from continuing operations, up from its previous view of $4.50 to $4.75.

The company said it expected a pretax gain of $60 million to $70 million in the second quarter tied to a legal settlement with the U.S. government to help results.

Defense companies have been aided by U.S. spending in the recession, but investors are concerned how the sector will fare given recent government proposals that would scale back key programs.

Boeing Co (BA.N) said on Wednesday first-quarter revenue rose 2 percent for its integrated defense systems business while operating earnings at the unit fell 18 percent. Boeing reported a drop in overall quarterly net earnings as commercial customers deferred plane orders.

On Tuesday, industry leader Lockheed Martin Corp (LMT.N) reported better-than-expected profit and raised its full-year forecast, citing a lower share count because of stock repurchases.

Northrop Grumman shares were up 31 cents to $48.19 in morning New York Stock Exchange trading, while Lockheed eased 10 cents to $75.94. Boeing was up 73 cents, or 2 percent, to $37.38.

So far this year, Northrop shares have risen about 7 percent, while Lockheed is down about 9 percent and Boeing is off 12 percent. (Reporting by Karen Jacobs; Editing by Lisa Von Ahn, editing by Dave Zimmerman)