Raytheon Wins $320M AESA Order - Analyst Blog

Raytheon Company ( RTN">RTN ) has received a $320 million order for its Active Electronically Scanned Array (AESA ) radar program from domestic and international customers. TheAESA radar also known as active phased array radar allows ships and aircraft to broadcast powerful radar signals while still remaining stealthy. Apart from Raytheon, Northrop Grumman Corporation ( NOC">NOC ) also manufacturesAESA radars.

Raytheon is one of the best-positioned companies among the large-cap defense players because of its non-platform-centric focus. Looking forward, the company enjoys strong order bookings and order backlog, an improving balance sheet, and growing cash flow, besides operational improvements. Future growth will be driven by its focus onISR unmanned systems, training, cyber security, Standard Missile-6, Patriot,Zumwalt andTHAAD .

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 ordercancellations . The company presently retains a short-termZacks #3 Rank (Hold) that corresponds with our long-term Neutral recommendation on the stock.

The company is expected to release its fourth quarter and fiscal year results on January 23, 2012. TheZacks Consensus Estimates for fourth quarter 2011 and fiscal year 2011 are currently at $1.35 per share and $5.05 per share, respectively.

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 The Boeing Company ( BA ) and Lockheed Martin Corporation ( LMT">LMT ).

BOEING CO ( BA ): Free Stock Analysis Report

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 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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