Raytheon Company RTN reported second-quarter 2018 adjusted earnings per share (EPS) from continuing operations of $2.45, beating the Zacks Consensus Estimate of $2.32 by 5.6%. The figure also improved 23.7% from $1.98 in the year-ago quarter.
Excluding the one-time tax benefit of 33 cents, the company reported GAAP earnings of $2.78 from continuing operations, up 47.1% year over year. Operational Performance
The company's second-quarter revenues of $6,625 million saw 5.5% year-over-year growth. The reported number also surpassed the Zacks Consensus Estimate of $6,499 million by 1.9%.
Raytheon's bookings in the second quarter were $8,694 million compared with $6,532 million in the year-ago quarter, reflecting a surge of 33.1%. Total backlog at the end of the quarter was $39.9 billion, up 10.3% from the previous year's figure.
Total operating expenses increased 5.7% to $5,525 million. The company's operating income of $1,100 million rose 4.3% from $1,055 million a year ago. Segment Performance Integrated Defense Systems
: The segment's revenues grew 3.6% year over year to $1,514 million, driven by higher net sales from an international Patriot program awarded in the prior quarter. Operating income
increased to $262 million from $245 million. Intelligence, Information and Services
: The segment's revenues of $1,687 million were higher than the year-ago level of $1,555 million by 8%. Operating income in the reported quarter also improved to $128 million
from $115 million a year ago. Missile Systems
: Revenues for the segment grew 7.9% to $2,051 million from $1,901 million a year ago, driven by higher net sales on classified programs. Operating income dropped to $231 million from $236 million
posted a year ago. Space and Airborne Systems
: Revenues in the second quarter stood at $1,605 million that witnessed a marginal dip of $3 million from the year-ago quarter. Operating income fell 6% to $206 million, primarily due to a change in program mix and other performance. Forcepoint
: This commercial cyber-security segment generated net sales of $148 million in the second quarter, up from $138 million a year ago. However, the joint-venture entity registered operating loss of $8 million in the reported quarter compared to the $2 million operating income generated in the previous year's quarter.
Raytheon Company Price, Consensus and EPS Surprise
Raytheon Company Price, Consensus and EPS Surprise | Raytheon Company Quote
Raytheon ended the second quarter with cash and cash equivalents of $3,094 million, down from $3,103 million as of Dec 31, 2017. Long-term debt was $4,752 million, up from an outstanding debt of $4,750 million as of Dec 31, 2017.
Operating cash flow from operating activities was $1.44 billion in the quarter compared with $741 million in the year-ago quarter.
In the reported quarter, Raytheon repurchased 1.9 million shares of common stock for $400 million.
Raytheon has raised its full-year guidance for the top and bottom line. The company currently expects 2018 revenues in the range of $26.7-$27.2 billion, up from the prior guidance range of $26.5-$27 billion. It now expects
earnings from continuing operations of around $9.77-$9.97 per share, up from the $9.70-$9.90 band.
Raytheon also raised projections for its 2018 operating cash flow from continuing operations from the range of $2.6-$3 billion to $3.6-$4.0 billion.
Raytheon currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here .
Recent Defense Releases
Lockheed Martin LMT reported second-quarter 2018 adjusted earnings of $4.31 per share, beating the Zacks Consensus Estimate of $3.89 by 10.8%.
Textron TXT reported second-quarter 2018 earnings from continuing operations of 87 cents per share, which surpassed the Zacks Consensus Estimate of 70 cents by 24.3%.
Hexcel Corporation HXL reported second-quarter 2018 adjusted earnings of 75 cents per share, which missed the Zacks Consensus Estimate of 76 cents by 1.3%. However, the bottom line improved 11.9% from the
prior-year figure of 67 cents.
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