Raytheon Company

Raytheon Company (RTN - Analyst Report) has fared well against the Dow Jones ($DJI), S&P 500 Index (SPX) and NASDAQ Composite Index (COMP) both over the short- and long-term. The company continues to boast a Zacks #1 Rank (“strong buy”) and has seen bullish estimates from analysts.

Company Description

Raytheon Company is the one of the largest aerospace and defense companies in the U.S., with a well-diversified line of military products, including missiles, radars, sensors, surveillance and reconnaissance equipment, communication and information systems, naval systems, air traffic control systems, and technical services.

Raytheon offers investors strong order bookings and order backlog, double-digit organic growth, an improving balance sheet, growing cash flow, above industry average ROE, and one of the highest dividend yields in the industry.

Recent Contract

The company recently announced that it was awarded a Department of Homeland Security contract to develop a Stand-Off Warning Against Radiological Materials (SWARM) technology.

Raytheon said this will be phase 1, worth $764,000, of a 5-phase development program that is worth $2.9 million if all options are exercised.

"The transportation of nuclear material into and within our borders is a serious threat to our nation's security," said Michael Del Checcolo, vice president of Engineering at Raytheon Integrated Defense Systems (IDS). "SWARM will develop a radiation detection and localization approach that uses multiple, mobile and highly distributed sensors. This approach will enable first responders to accurately evaluate a situation and take swift action in the event of a threat to our national security."

Solid Quarterly Growth

The Zacks #1 Rank (“strong buy”) released third-quarter results in late October. Earnings per share of $1.01 eclipsed the year-prior 86 cents and exceeded the consensus estimate by 5%. The company cited operational improvements and lower pension expense as contributors to the higher earnings. Net sales of $5.9 billion jumped 12% year-over-year.

Higher Estimates

Raytheon has seen analysts hike estimates as they forecast year-over-year earnings growth of 22% for 2008. Analysts boosted full-year 2008 earnings estimates to $4.03 per share from the two months-ago level of $3.99.

Read the full analyst report on RTN