Raytheon Adds Cyber Security Firm - Analyst Blog


Raytheon Company ( RTN ) has acquired privately held Henggeler Computer Consultants, Inc. that provides IT subcontracting services to government clients in Washington, D.C. for an undisclosed amount. Henggeler has a team of highly specialized and proven performers that offer operating systems and database administration services, language development services, as well as multi lingual database storage and retrieval to clients in United States, South Korea, and Saudi Arabia.

Raytheon Company serves the intelligence community as well as the Department of Defense, in specialized areas of cyber security, enterprise architecture and systems engineering. The acquisition will thus help Raytheon expand its comprehensive cyber security offerings with enterprise solutions delivered by a highly regarded technical team, adding to its competitive edge.

The company seems to be focusing on developing and enhancing its software and cyber security capabilities as this is the 2nd such acquisition in December and the 10th since 2007. The other competent cyber-security company that Raytheon acquired this month was Pikewerks Corporation.

The company does not expect the Henggeler transaction to materially impact its total company sales or earnings per share for the fourth quarter of 2011 or fiscal year 2012. Going forward, the Zacks Consensus Estimates for fourth quarter 2011 and fiscal year 2011 are currently at $1.35 per share and $5.05 per share, respectively.

Raytheon is one of the best-positioned companies among the large-cap defense players and enjoys strong order bookings and order backlog, an improving balance sheet, growing cash flow, and operational improvements.

This is, however, offset by apprehensions over future growth of the U.S. defense budget, the fate of high-cost programs, risks related to key project executions and order cancellations. The company presently retains a short-term Zacks #3 Rank (Hold) that corresponds with our long-term Neutral recommendation on the stock.

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 main competitors include Lockheed Martin Corporation ( LMT ) and Northrop Grumman Corporation ( NOC ).

LOCKHEED MARTIN ( LMT ): Free Stock Analysis Report
NORTHROP GRUMMN ( NOC ): Free Stock Analysis Report

RAYTHEON CO ( RTN ): Free Stock Analysis Report
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: LMT , NOC , RTN



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