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Raytheon Approves Additional $2B Share Repurchase Program

Raytheon CompanyRTN announced that its Board of Directors has authorized a share repurchase plan of up to $2 billion. This is in addition to the previous share buyback plan of the company's outstanding common stock.

The company added that, depending on market conditions, it will occasionally buy back shares according to its discretion.

Shares of Raytheon ended the day's session 0.6% higher, and rose 1.1% in after-hours trading.

Raytheon repurchased 2.4 million shares of common stock for $250 million during the third quarter of 2015. This takes the company's year-to-date buyback tally to 7.0 million shares for $750 million. Raytheon remains on track to achieve its $1 billion share buyback target for 2015.

Also, the company announced quarterly cash dividend of 67 cents per share, same as the previous dividend payout. This amount will be paid on Feb 4 to shareholders on record as of the close of business on Jan 6, 2016.

Investors should note that Raytheon reported third-quarter 2015 earnings from continuing operations of $1.47 per share, beating the Zacks Consensus Estimate by 5%. The company's improved revenue outlook for 2015 on superior operating performance is also encouraging. Raytheon now expects revenue for 2015 to be in the range of $23.0 billion to $23.3 billion versus $22.7 billion to $23.2 billion expected earlier.

The company continues to be a strong cash generator helping it to take important cash deployment decisions. Operating cash flow from continuing operations in the third quarter increased 175% year over year.

Zacks Rank

Raytheon currently has a Zacks Rank #3 (Hold). A better-ranked stock from the same industry is TransDigm Group Incorporated TDG , holding a Zacks Rank #2 (Buy). Two other favorably-ranked stocks from the broader aerospace and defense industry are The Boeing Company BA and General Dynamics Corporation GD , both holding a Zacks Rank #2.

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BOEING CO (BA): 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 Nasdaq, Inc.


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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