Raytheon Company (RTN - Free Report) 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.
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.
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