Raytheon Company beat both earnings and revenue expectations for third quarter, with most of its business segments experiencing positive growth.
The U.S. defense contractor and industrial corporation’s third-quarter 2019 earnings of $3.08 per share from continuing operations exceeded analysts’ expectation of $2.85 (the Zacks Consensus Estimate). The bottom line grew + 36.9% from the year-ago quarter.
Raytheon's third-quarter sales rose +9.4% year over year to $7,446 million surpassing the Zacks Consensus Estimate of $7,260 million.
The company’s bookings increased +8.4% year-over-year to $9,439 million in the quarter. As of the end of third-quarter 2019, total backlog was $44.61 billion, +3.5% higher from the previous quarter’s figure.
The company’s operating income of $1,206 million rose +1.9% year-over-year.
Raytheon’s sales from Integrated Defense Systems segment increased +18% year-over-year, on the back of higher net sales from an international air and missile defense system program. The segment’s operating income rose +17% year over year for the quarter.
Sales from the Intelligence, Information and Services segment rose + 6%, and its operating income improved +8%.
Sales from the Space and Airborne Systems segment were up +14%, while the segment’s operating income rose +22%.
Missile Systems segment registered sales growth of +4%. But the segment’s operating income fell - 15% due to lower net program efficiencies.
Net revenues at Forcepoint (commercial cyber-security segment) fell -3%. Operating income of $14 million was also lower from the year-ago quarter’s $18 million.
Looking ahead, Raytheon partially raised its guidance for full-year earnings per share from continuing operations to the range of $11.70-$11.80 (vs. prior guidance of $11.50-$11.70 ). The Zacks Consensus Estimate for full-year earnings currently sits at at $11.73, which is lower than the midpoint of the company’s projected range.
For the full-year, the company hiked its revenues guidance to a range of $29.1-$29.4 billion (vs. prior guidance of $28.8-$29.3 billion). The Zacks Consensus Estimate for full-year revenues is $29.08 billion, which is lower than the mid-point of the company’s forecast range.
Raytheon re-iterated its 2019 operating cash flow from continuing operations forecast in the range of $4-$4.2 billion.