Earnings Review and Free Research Report: Raytheon Reported Better than Expected Sales and Earnings Results; Raised Guidance for Second Time in 2017

Research Desk Line-up: Huntington Ingalls Industries Post Earnings Coverage

LONDON, UK / ACCESSWIRE / August 9, 2017 / Pro-Trader Daily has just published a free post-earnings coverage on Raytheon Co. (NYSE: RTN), which can be viewed by registering at http://protraderdaily.com/optin/?symbol=RTN, following the Company's posting of its second quarter fiscal 2017 results on July 27, 2017. The Tomahawk and Patriot missile system manufacturer's sales grew 4.2% and adjusted EPS gained 5.5% on a y-o-y basis. Our daily stock reports are accessible for free, and with those to look forward today you also will be signing up for a complimentary member's account at:

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Get more of our free earnings reports coverage from other constituents of the Aerospace/Defense Products & Services industry. Pro-TD has currently selected Huntington Ingalls Industries, Inc. (NYSE: HII) for due-diligence and potential coverage as the Company reported on August 03, 2017, its financial results for Q2 2017. Register for a free membership today, and be among the early birds that get access to our report on Huntington Ingalls Industries when we publish it.

At Pro-TD, we make it our mission to bring you news that matter about the stock you follow. Today, our research desk covers a blog story on RTN; also brushing on HII. With the links below you can directly download the report of your stock of interest free of charge at:

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Earnings Reviewed

Raytheon announced net sales of $6.3 billion for Q2 2017, up 4.2% compared to sales of $6.0 billion in Q2 2016. The Company's net sales numbers surpassed analysts' estimates of $6.23 billion.

Raytheon's bookings were $6.5 billion in Q2 2017 compared to $7.1 billion in Q2 2016. The Company's Backlog at the end of the reported quarter was $36.2 billion, reflecting an increase of approximately $1.1 billion compared to the year ago corresponding period.

For Q2 2017, Raytheon's earnings from continuing operations were $1.89 per share compared to $2.41 in Q2 2016. The Company noted that the reported quarter earnings continuing operations included a $0.09 charge associated with the early retirement of debt, while Q2 2016 earnings from continuing operations included a tax-free gain of $0.53 related to the previously disclosed Thales Raytheon Systems (TRS) transaction. Raytheon reported adjusted earnings of $1.98 per share up 5.5% on a y-o-y basis and topped Wall Street's estimates for earnings of $1.74 per share

Segment Results

During Q2 2017, Raytheon's Integrated Defense Systems (IDS) generated net sales of $1.46 billion, up 5% compared to sales of $1.40 billion in Q2 2016, primarily driven by higher net sales on an international early warning radar program awarded in Q1 2017.

IDS recorded $245 million of operating income in Q2 2017 compared to $376 million in Q2 2016. During the reported quarter, IDS booked $364 million on the Air and Missile Defense Radar (AMDR) program for the US Navy and $146 million on the Multi-Function RF System (MFRFS) program for the US Army. IDS also booked $178 million on two international Patriot contracts.

Raytheon's Intelligence, Information, and Services (IIS) reported net sales of $1.56 billion for Q2 2017 compared to $1.59 billion in Q2 2016. The segment recorded $115 million of operating income in the reported quarter compared to $120 million in Q2 2016.

During Q2 2017, IIS booked $374 million on domestic and foreign training programs in support of Warfighter FOCUS activities. IIS also booked $555 million on a number of classified contracts.

For Q2 2017, Raytheon's Missile Systems (MS) net sales jumped 11% to $1.90 billion compared with net sales of $1.71 billion in Q2 2016, primarily driven by higher net sales on the Standard Missile-2 (SM-2), Standard Missile-3 (SM-3®), and Paveway™ programs. The segment recorded $236 million of operating income in the reported quarter compared to $233 million in the prior year's same quarter.

During Q2 2017, MS booked $690 million for Paveway, $619 million for SM-2, $436 million for SM-3, $116 million for the Long Range Precision Fires (LRPF) Missile system, $113 million for AIM-9X Sidewinder™ short-range air-to-air missiles, and $90 million for Advanced Medium-Range Air-to-Air Missiles (AMRAAM®). The division also recorded bookings worth $214 million on a number of classified contracts.

Raytheon's Space and Airborne Systems (SAS) generated net sales of $1.61 billion, up 4% compared to $1.55 billion in Q2 2016, primarily attributed to higher net sales on a domestic classified program. The segment recorded $218 million of operating income in the reported quarter compared to $205 million in the year ago same period. During Q2 2017, SAS booked $91 million for radar components for the US Navy, while it also announced bookings of $137 million on a number of classified contracts.

For Q2 2017, Raytheon's Forcepoint generated net sales of $138 million compared to $137 million in Q2 2016. The segment recorded $2 million of operating income in the reported quarter compared to $10 million in the year ago same period, with the drop primarily driven by planned investments in sales and marketing.

Cash Matters

Raytheon's operating cash flow from continuing operations was $782 million for Q2 2017 compared to $746 million for Q2 2016. In the reported quarter, the Company repurchased 0.6 million shares of common stock for $100 million. On a year-to-date basis, Raytheon has repurchased 3.3 million shares of common stock for $500 million. During Q2 2017, the Company repurchased $591 million of debt that was due in March and December of 2018.

Outlook

For FY17, Raytheon is forecasting sales in the range of $25.1 billion to $25.6 billion versus the earlier guidance of $24.9 billion to $25.4 billion. The Company is estimating earnings in the band of $7.35 to $7.50 per share compared with the previous guidance of $7.25 to $7.40 per share.

Stock Performance

On Tuesday, August 08, 2017, the stock closed the trading session at $174.80, slightly up 0.74% from its previous closing price of $173.51. A total volume of 1.43 million shares have exchanged hands, which was higher than the 3-month average volume of 1.33 million shares. Raytheon's stock price surged 9.21% in the last three months, 18.01% in the past six months, and 24.89% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have rallied 23.10%. The stock is trading at a PE ratio of 24.13 and has a dividend yield of 1.82%. At Tuesday's closing price, the stock's net capitalization stands at $50.81 billion.

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