Shares in Northrop Grumman Corp. dipped nearly 2 percent as the defense contractor reported meek earnings that missed analysts’ expectations.

Northrop reported first quarter net income of $387 million ($1.10 per share), an 8 percent hike from $358 million ($1.02) for the same period a year earlier. That was slightly off Wall Street’s forecasts of $1.14, according to a poll performed by Thomson Financial.

Revenues for the Los Angeles-based government contractor were up 4 percent to $7.3 billion, also below analysts’ expectations of $7.5 billion.

A month-long strike by 6,000 workers at the Ingalls shipyard in Pascagoula, Miss. pushed 2 cents of profit into the second half, Northrop said.

The company added that it expects 2007 sales of $31 billion to $32 billion, with earnings from continuing operations of $4.80 to $5.05 a share. Analyst see $31.8 billion in revenues and $5 per share earnings.

Shares in Northrop were down $1.43 to $75.19 in early trading Tuesday on the New York Stock Exchange.