As we anticipated when we recommended Argon ST, Inc. (NASDAQ:STST) in early December, its technological focus will keep the revenues coming for this defense contractor.

We said, “Unmanned surveillance and intelligence-gathering technologies will play an even greater role as a new administration seeks to remove U.S. troops out of harms way.” Read the full article here: http://www.todaysfinancialnews.com/editors-pic/argon-st-stst-may-hold-the-key-to-future-earnings-in-a-war-weary-world-6327.html

In a conference call today, Argon ST executives announced that their Q1 2009 results have topped analysts’ estimates.

First quarter revenue came in at $84 million — 13% higher than the same period last year. Analysts had anticipated revenue to come in at $83.1 million.

Operating income was also up 13% from Q1 of 2008 at $7.6 million.

Fully diluted earnings per share was 24 cents on 22 million shares, whereas analysts had predicted just 22 cents. The first quarter of last year earnings was 19 cents on 22.3 million shares.

Best of all, the company is maintaining its 2009 fiscal year guidance numbers of $375 to $395 million in revenue, $34 to $38 million in operating income and $48 to $53 million for the adjusted EBITA.

The news has sent the share price up about 10% today. Our recommended entry price was at or under $19. If you got in then, I recommend you sell when the stock hits $22.80 and bank the 20% gains.

Source: Q1 Profits Up for TFN Editor’s PIC Argon ST (STST)