Raytheon Q3 Results Top Estimates, Boosts 2013 Outlook

(RTTNews) - Defense contractor Raytheon Co. (RTN) reported Thursday a profit for the third quarter that declined from last year, reflecting sales decline across its four operating businesses. However, both adjusted earnings per share and quarterly revenues topped analysts' expectations. The company also raised its earnings and revenue guidance for the full-year 2013.

"While the overall economic environment has been challenging, Raytheon's solid third quarter performance reflects our continued focus on the fundamentals. Our company has continued to perform well by providing affordable solutions and advanced technology that meet our customers' current and future needs," Chairman and CEO William Swanson said in a statement.

The Waltham, Massachusetts-based company reported net earnings of $489 million for the third quarter, lower than $500 million in the prior-year quarter, while earnings per share increased to $1.51 from last year's $1.50 per share.

Earnings from continuing operations was $487 million or $1.51 per share, compared to $501 million or $1.51 per share in the year-ago quarter.

Excluding items, adjusted earnings per share was $1.60, compared to last year's $1.62. On average, 20 analysts polled by Thomson Reuters expected the company to report earnings of $1.33 per share for the quarter. Analysts' estimates typically exclude special items.

The results for the quarter were calculated on 323.3 million outstanding shares, compared to 333 million outstanding shares in the year-ago quarter.

Net sales for the quarter declined 3.4 percent to $5.84 billion from $6.05 billion in the same quarter last year, but topped nineteen Wall Street analysts' consensus estimate of $5.81 billion by a whisker.

Net sales for integrated defense systems edged down to $1.60 billion from last year, and intelligence and information systems net sales declined 3 percent to $1.50 billion from last year.

Missile systems net sales decreased 3 percent to $1.64 billion from a year ago, as well as space and airborne systems net sales declined 7 percent to $1.56 billion from last year.

Operating margin for the quarter remained flat with last year at 13.0 percent.

The company reported bookings of $5.69 billion for the quarter, resulting in a book-to-bill ratio of 0.97, compared to bookings of $7.29 billion in the year-ago quarter.

Looking ahead to fiscal 2013, the company raised its adjusted earnings to a range of $6.10 to $6.20 per share from the prior forecast of $6.00 to $6.10 per share. It now projects net sales between $23.6 billion and $23.8 billion, up from the previous guidance between $23.5 billion and $23.7 billion.

Street is currently looking for full-year 2013 earnings of $5.66 per share, on annual revenues of $23.69 billion.

In Thursday's regular trading session, RTN is currently trading at $77.07, down $1.42 or 1.81% on a volume of 1.16 million shares.