Filed Under: ,
Tickers in this Article: RTN
Raytheon Company (NYSE:RTN) announced its results for the most recent quarter on October 25, 2012. Raytheon provides electronics, mission systems integration and other capabilities to customers in defense, homeland security and other government markets throughout the world.

Investors care about earnings because they drive stock prices. Strong earnings generally result in the stock price moving up and vice versa. SEE: Everything Investors Need To Know About Earnings

The Numbers: Raytheon's EPS topped estimates and revenues were in line with expectations. The company reported $1.50 per share versus the $1.27 per share estimate and revenues of $6.04 billion versus the $6.03 billion estimate. EPS rose 4.9% while revenue declined 1.2% from the same period last year. The company's income has remained about on par with last year's levels. Last quarter's falling profit ends a streak of three consecutive quarters of year-over-year profit increases.

Management Quote: "Raytheon's strong operating performance in the third quarter reflects our continued focus on reducing cost, and increasing productivity," said William H. Swanson, Raytheon's Chairman and CEO. "Our bookings in the quarter were strong, and we have significant opportunities in both domestic and international markets for our innovative technologies and affordable solutions."

A Look Back: Net income has increased 2.2% year-over-year on average across the last five quarters. The biggest gain came in the fourth quarter of the last fiscal year, when income climbed 18.3% from the year-earlier quarter.

Looking Ahead: Analysts appear increasingly negative about the company's results for the next quarter. The average estimate for the fourth quarter has moved down from $1.37 a share to $1.33 over the last 90 days. Decreasing earnings estimates is generally a negative sign as it suggests analyst believe future earnings to be weaker than previously anticipated. For the fiscal year, the average estimate has moved up from $5.26 a share to $5.33 over the last ninety days.

comments powered by Disqus

Trading Center