) is expected to release its third quarter 2012 results on
October 25, 2012. The Zacks Consensus Estimate for the third
quarter of 2012 is $1.27 per share (year-over-year decrease of
8.43%) on revenues of $6,157 million (marginal year-over-year
increase of 0.40%).
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RAYTHEON CO (RTN): Free Stock Analysis Report
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Second-quarter 2012, a Synopsis
Raytheon Company reported second quarter 2012 earnings from
continuing operations of $1.41 per share, beating the Zacks
Consensus Estimate of $1.21. The result was also higher than the
year-ago quarter's earnings of $1.20 per share. The increase was
driven by operational improvements and capital deployment
Revenue was $5.99 billion, down 3.4% from $6.20 billion in the
year-ago period. It also missed the Zacks Consensus Estimate by
$30 million. The company reported net income of $471 million,
higher than $438 million in the prior-year period. Total backlog
at the end of the reported period was $33.9 billion, down from
$34.5 billion in the year-ago period.
Read our full coverage on this earnings report:
Raytheon Beats EPS Est, Misses on Revs
Guidance for 2012
Raytheon had maintained its sales guidance in the range of $24.5
billion to $25 billion for 2012. Its earnings per share guidance
currently stand at $5.70-$5.85 for 2012.
The analysts covered by Zacks expects Raytheon to post
third-quarter 2012 earnings of $1.27 per share, lower than $1.39
delivered in the prior-year quarter. Currently, the Zacks
Consensus Estimate ranges between earnings of $1.22 and $1.32 a
For 2012, the Zacks Consensus Estimate stood at $5.33 per share,
lower than its prior-year earnings of $5.74 per share. The
current Zacks Estimate ranges between $5.20 and $5.45 per share.
Estimate Revisions Trend
We see a static to declining trend for estimates for the third
quarter of 2012. Of the 18 estimates, none moved in the upward
direction over the last 30 days. However, one moved in the
opposite direction over the last 30 days.
Similarly, for full-year 2012, among the 19 estimates, none of
the estimates moved in the upward direction over the last 30 days
while one moved in the opposite direction over the last 30 days.
The analysts seem to be slightly negative for third quarter as
well as full-year 2012.
The Zacks Consensus Estimate for the third quarter of 2012 inched
down by a penny to 1.27 cents over the last 30 days. For
full-year 2012, the consensus estimate moved down by a penny to
$5.33 for the last 30 days.
With respect to earnings surprises, Raytheon Energy has topped
the Zacks Consensus Estimate over the last four quarters in the
range of 4.51% to 28.89%. The average surprise over the last four
quarters remained at positive 18.95%. The earnings beat in
December 2011 was the highest at 28.89%.
We believe that Raytheon is one of the best-positioned companies
among the large-cap defense players, due to its
non-platform-centric focus, rising international sales,
substantial presence in classified market, strong cash flow
generation and its focus on shareholder value.
However, this is offset by apprehensions over the future growth
of the U.S. defense budget, the fate of high-cost programs, risks
related to key project executions and order cancellations.
Raytheon presently retains a short-term Zacks #3 Rank (Hold) that
corresponds with our long-term Neutral recommendation on the
Based in Massachusetts, Raytheon Company is one of the largest
aerospace and defense companies in the U.S., with a diversified
line of military products, including missiles, radars, sensors,
surveillance and reconnaissance equipment, communication and
information systems, naval systems, air traffic control systems,
and technical services.
Some of its competitors are
L-3 Communications Holdings Inc.
FLIR Systems Inc.