Raytheon Co.

Raytheon Co. (RTN - Analyst Report), which recently announced a contract with the U.S. Navy, is scheduled to release results for the fourth quarter and full year on January 31, 2008. In mid-December, the company declared a quarterly dividend of 25.5 cents per share. RTN’s dividend yield of 1.7% stands above the industry average. The company’s return on equity (ROE) of 12% more than doubles the industry’s average of 5%.

Full Analysis

Raytheon Company, with 2006 sales of $19.7 billion, is a technology leader specializing in defense, homeland security and other government markets throughout the world. With a history of innovation spanning 85 years, Raytheon provides state-of-the-art electronics, mission systems integration and other capabilities in the areas of sensing; effects; and command, control, communications and intelligence systems, as well as a broad range of mission support services. With headquarters in Waltham, Mass., Raytheon employs 72,000 people worldwide.

The company recently announced that the U.S. Navy is retrofitting 135 Super Hornets with Raytheon Company's APG-79 active electronically scanned array radar.

RTN noted that an initial contract worth nearly $55 million authorizes Raytheon to supply 19 AESA systems, spares and maintenance. This ensures Super Hornets manufactured before installation of the APG-79 will benefit from Raytheon's new advanced sensor technology.

"The retrofit program further enhances the Navy's airborne capabilities, ensuring our customer has game-changing sensor technology across the majority of its airborne assets," said Dr. Tom Kennedy, vice president for Raytheon's Tactical Airborne Systems business.

In mid-December, the company declared a quarterly dividend of 25.5 cents per share. The cash dividend is payable on January 31, 2008 to shareholders of record as of the close of business on January 3, 2008. RTN’s dividend yield of 1.7% stands above the industry average.

The company is scheduled to release results for the fourth quarter and full year on January 31, 2008.

Analyst estimates have been on the rise. Wall Street is calling for earnings of $3.25 per share for the 2007 year, three cents higher than the forecasts of three months ago. The most accurate estimate is pegged higher at $3.28. Projections for the 2008 year stand at $3.78 per share, versus last month’s $3.76. The most accurate expectation for 2008 is also more bullish at $3.80.

Raytheon reported third-quarter results in late October. Earnings per share of 86 cents, topped the consensus estimate by 6%.

The company’s return on equity (ROE) of 12% more than doubles the industry’s average of 5%.