Raytheon (RTN, $189.83) beats Q2 earnings and sales expectations; raises full-year outlook

Raytheon reported second-quarter results that exceeded analysts’ estimates. The defense contractor company also boosted its full-year guidance.

The company’s net income came in at $817 million, or $2.92 a share – higher than analysts’ expectations of $2.64 a share (based on FactSet poll of analysts).

Revenue increased +8.1% year-over-year to $7.16 billion, also beating analysts’ estimate of $7.04 billion.

Raytheon lifted its full-year earnings guidance to  $11.70 a share, compared to its previous projection of $11.60.  It also raised its full-year net sales outlook to $29.3 billion from $29.1 billion.

Raytheon’s CEO Thomas A. Kennedy said the company’s merger plans with the United Technologies Corporation "is progressing well”. Kennedy indicated that the integration team is working on execution plans to materialize revenue and cost synergies from the merger. The transaction is expected to close in the first half of 2020, according to Kennedy.

Contributor

Sergey Savastiouk|Expert

Sergey Savastiouk, Ph.D. has a degree in Applied Mathematics from Moscow University and has extensive experience as an entrepreneur, investor, manager, and mathematician. His professional expertise is in applied mathematics, mathematical modeling, system and pattern analysis, and software and hardware system integration. He has served as the CEO of several hi-tech start-up companies and nonprofit organizations, which has given him proven capabilities in business strategy for high-tech start-up companies, market assessment, company formation, team building, product development, marketing, and sales. He has published numerous articles in journals and magazines on related fields. As a retail investor, he spent 15 years developing his proprietary trading and quantitative algorithms (now Tickeron’s A.I.), which brought him significant returns in trading the stock market. His current work and goal in founding Tickeron is to bring professional, sophisticated stock market analysis capabilities to retail investors via an easy-to-use interface.