Science Applications International Corp. raised its annual outlook after logging higher sales in the most recent quarter.

The defense contractor now expects full-year revenue to be $7.28 billion to $7.38 billion, up from its previous guidance range of $7.08 billion to $7.28 billion.

It also raised its outlook for adjusted earnings per share to $10.65 to $10.75, from $9.90 to $10.10.

SAIC's stock rose 7.5% to $135.40 in premarket trading Monday.

The higher guidance comes as SAIC posted a profit of $102 million, or $2.38 a share, compared with $127 million, or $2.71 a share, a year earlier.

Stripping out certain one-time items, adjusted per-share earnings were $3.01, ahead of the $2.31 anticipated by analysts, according to FactSet.

Revenue rose 6% to $1.88 billion. Analysts surveyed by FactSet had forecast revenue of $1.76 billion.

The higher sales were driven by a ramp up in volume on existing and new contracts from the acquisition of SilverEdge Government Solutions. Operating income as a share of revenue increased due to improved profitability.