Gray and Co. Public Communications International Inc., one of Washington's largest public relations houses, more than doubled its annual profits for the fiscal year that ended Feb. 28.

Net income was $1.2 million (47 cents a share) compared with $559,000 (24 cents) in 1985.

An estimated 7.6 percent of that profit came from Gray's contract with Morocco. Although the contract was not renewed after its expiration last March, Gray officials said yesterday that they expect continued earnings growth in the current fiscal year.

Gray and Co. revenue increased 49.7 percent, to $27.1 million from $18.1 million.

"We are pleased with the continued growth in revenues and significant improvement of earnings, showing the strong attraction of the company's services to a broad range of clients," said Gray and Company Co. Chairman Robert Keith Gray.

But, although the company's performance last year was good, "several factors acted to keep us from achieving record profits," Gray said, including lower-than-expected earnings by Gray Strayton, a Gray and Co. subsidiary.

*Smithfield Foods Inc. of Arlington yesterday revised its 1986 earnings, reporting a 34.3 percent increase in earnings for the fiscal year that ended April 27, to $4.7 million ($1.95 a share) from $3.5 million ($1.22) for the previous fiscal year.

Smithfield originally reported net income of $9.2 million ($3.75). But a legal judgment against a subsidiary of the company, Gwaltney of Smithfield Ltd., and the expense of repurchasing its own convertible subordinated notes lowered Smithfield's earnings, company officials said.