The board of directors of
) has approved a share repurchase program, whereby the company is
authorized to buy back $2 billion shares.
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RAYTHEON CO (RTN): Free Stock Analysis Report
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The new authorization by Raytheon is duly supported by the
company's sturdy financial position. Cash and cash equivalents at
the end of the third quarter stood at $2.9 billion while cash
from operations in the first nine months totaled $1.3 billion. A
sustained solid operational performance continues to cushion the
company's sturdy financial position.
Raytheon has maintained a solid track record of delivering
positive earnings surprises. In the last reported quarter, it
surpassed the Zacks Consensus Estimate by 13.5% on strong program
Earlier in Sep 2011, the board of directors authorized Raytheon
to repurchase up to $2.0 billion shares. With 10.5 million shares
bought back for $675 million in the first nine months, the
company is left with $670 million under its authorization as of
Sep 29, 2013.
Concurrently, the board of directors also approved a quarterly
dividend of 55 cents to the shareholders of record on the close
of Jan 2, 2014. The dividend will be paid on Feb 4, 2014.
Raytheon's dividend yield currently stands at 2.57%, much above
the industry yield of 1.73% and that of other players like
L-3 Communications Holdings Inc
General Dynamics Corp
) (2.50%) and
Northrop Grumman Corp.
There was no earnings momentum over the last 7 days. With the
news of the latest buyback authorization, we expect analysts to
raise their estimates for the company. Raytheon presently carries
a Zacks Rank #1 (Strong Buy).