Raytheon Company reported second-quarter 2018 adjusted earnings per share (EPS) from continuing operations of $2.45, beating the Zacks Consensus Estimate of $2.32 by 5.6%. The figure also improved 23.7% from $1.98 in the year-ago quarter.
Excluding the one-time tax benefit of 33 cents, the company reported GAAP earnings of $2.78 from continuing operations, up 47.1% year over year.
Operational Performance
The company's second-quarter revenues of $6,625 million saw 5.5% year-over-year growth. The reported number also surpassed the Zacks Consensus Estimate of $6,499 million by 1.9%.
Raytheon's bookings in the second quarter were $8,694 million compared with $6,532 million in the year-ago quarter, reflecting a surge of 33.1%. Total backlog at the end of the quarter was $39.9 billion, up 10.3% from the previous year’s figure.
Total operating expenses increased 5.7% to $5,525 million. The company’s operating income of $1,100 million rose 4.3% from $1,055 million a year ago.
Segment Performance
Integrated Defense Systems: The segment's revenues grew 3.6% year over year to $1,514 million, driven by higher net sales from an international Patriot program awarded in the prior quarter. Operating income
increased to $262 million from $245 million.
Intelligence, Information and Services: The segment's revenues of $1,687 million were higher than the year-ago level of $1,555 million by 8%. Operating income in the reported quarter also improved to $128 million
from $115 million a year ago.
Missile Systems: Revenues for the segment grew 7.9% to $2,051 million from $1,901 million a year ago, driven by higher net sales on classified programs. Operating income dropped to $231 million from $236 million
posted a year ago.
Space and Airborne Systems: Revenues in the second quarter stood at $1,605 million that witnessed a marginal dip of $3 million from the year-ago quarter. Operating income fell 6% to $206 million, primarily due to a change in program mix and other performance.
Forcepoint: This commercial cyber-security segment generated net sales of $148 million in the second quarter, up from $138 million a year ago. However, the joint-venture entity registered operating loss of $8 million in the reported quarter compared to the $2 million operating income generated in the previous year’s quarter.
Raytheon Company Price, Consensus and EPS Surprise
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Raytheon Company reported second-quarter 2018 adjusted earnings per share (EPS) from continuing operations of $2.45, beating the Zacks Consensus Estimate of $2.32 by 5.6%. The figure also improved 23.7% from $1.98 in the year-ago quarter.
Excluding the one-time tax benefit of 33 cents, the company reported GAAP earnings of $2.78 from continuing operations, up 47.1% year over year.
Operational Performance
The company's second-quarter revenues of $6,625 million saw 5.5% year-over-year growth. The reported number also surpassed the Zacks Consensus Estimate of $6,499 million by 1.9%.
Raytheon's bookings in the second quarter were $8,694 million compared with $6,532 million in the year-ago quarter, reflecting a surge of 33.1%. Total backlog at the end of the quarter was $39.9 billion, up 10.3% from the previous year’s figure.
Total operating expenses increased 5.7% to $5,525 million. The company’s operating income of $1,100 million rose 4.3% from $1,055 million a year ago.
Segment Performance
Integrated Defense Systems: The segment's revenues grew 3.6% year over year to $1,514 million, driven by higher net sales from an international Patriot program awarded in the prior quarter. Operating income
increased to $262 million from $245 million.
Intelligence, Information and Services: The segment's revenues of $1,687 million were higher than the year-ago level of $1,555 million by 8%. Operating income in the reported quarter also improved to $128 million
from $115 million a year ago.
Missile Systems: Revenues for the segment grew 7.9% to $2,051 million from $1,901 million a year ago, driven by higher net sales on classified programs. Operating income dropped to $231 million from $236 million
posted a year ago.
Space and Airborne Systems: Revenues in the second quarter stood at $1,605 million that witnessed a marginal dip of $3 million from the year-ago quarter. Operating income fell 6% to $206 million, primarily due to a change in program mix and other performance.
Forcepoint: This commercial cyber-security segment generated net sales of $148 million in the second quarter, up from $138 million a year ago. However, the joint-venture entity registered operating loss of $8 million in the reported quarter compared to the $2 million operating income generated in the previous year’s quarter.
Raytheon Company Price, Consensus and EPS Surprise
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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