Stock Monitor: Air Industries Post Earnings Reporting
LONDON, UK / ACCESSWIRE / November 27, 2017 / Active-Investors' free earnings report on Raytheon Co. (NYSE: RTN) has freshly been issued to its members, and you can also sign up to view this report at www.active-investors.com/registration-sg/?symbol=RTN. The Company reported its third quarter fiscal 2017 operating results on October 26, 2017. The Waltham, Massachusetts-based weapons maker surpassed earnings expectations and also raised its earnings guidance for FY17. Register today and get free access to our complimentary member's area where many more reports are available: www.active-investors.com/registration-sg.
Active-Investors.com is currently working on the research report for Air Industries Group (NYSE: AIRI), which also belongs to the Industrial Goods sector as the Company Raytheon. Do not miss out and become a member today for free to access this upcoming report at: www.active-investors.com/registration-sg/?symbol=AIRI.
Active-Investors.com is focused on giving you timely information and the inside line on companies that matter to you. This morning, Raytheon most recent news is on our radar and we have decided to include it on our blog post. Today's free coverage is available at: www.active-investors.com/registration-sg/?symbol=RTN.
Earnings Highlights and Summary
For the third quarter of the fiscal year 2017, Raytheon announced net sales of $6.28 billion, up 4.5% compared to $6.01 billion in Q3 2016. The Company's revenue numbers fell short of analysts' estimates of $6.33 billion.
Raytheon's earnings per share (EPS) from continuing operations was $1.97 in Q3 2017, up 7.07% compared to $1.84 in Q3 2016. The increase in EPS from continuing operations was primarily driven by operational improvements. The Company's earnings beat Wall Street's estimates of $1.90 per share.
During Q3 2017, Raytheon's Integrated Defense Systems (IDS) segment generated net sales of $1.39 billion, up 4% compared to $1.33 billion in Q3 2016. The increase was primarily driven by higher net sales on an international early warning radar program awarded in Q1 2017. The IDS segment recorded an operating income of $231 million in the reported quarter compared to $211 million in the year ago same period, primarily attributed to higher net program efficiencies and higher volume.
For Q3 2017, Raytheon's Intelligence, Information, and Services (IIS) segment recorded net sales of $1.54 billion compared to $1.53 billion in Q3 2016. The IIS segment recorded an operating income of $112 million in the reported quarter versus $123 million in the year ago comparable period. The change in operating margin was primarily due to a change in program mix and other performance.
During Q3 2017, the IIS segment booked $469 million on domestic and foreign training programs in support of Warfighter FOCUS activities, and $104 million to provide intelligence, surveillance, and reconnaissance (ISR) support to the US Air Force. The IIS segment also booked $686 million on a number of classified contracts.
Raytheon's Missile Systems (MS) segment had net sales of $1.95 billion in Q3 2017, up 10% compared to $1.77 billion in Q3 2016. The increase was primarily driven by higher net sales on the Paveway™ and Excalibur® programs. The MS segment recorded $280 million of operating income in the reported quarter compared to $235 million in the prior year's corresponding quarter, due to higher net program efficiencies and higher volume.
Raytheon's Space and Airborne Systems (SAS) segment reported net sales of $1.60 billion in Q3 2017 compared to $1.59 billion in Q3 2016. The SAS segment recorded an operating income of $212 million in the reported quarter compared to $215 million in the year earlier same quarter. During Q3 2017, the SAS segment booked approximately $200 million on classified and unclassified space programs, and $84 million for radar components for the US Navy and the Royal Australian Air Force. The SAS segment also booked $435 million on a number of other classified contracts.
Raytheon's operating cash flow from continuing operations was $382 million for Q3 2017 compared to $640 million for Q3 2016. The change in operating cash flow from continuing operations was primarily due to higher required pension contributions in the reported quarter, partially offset by the timing of collections.
During Q3 2017, Raytheon repurchased 1.1 million shares of common stock for $200 million. On a year-to-date basis, the Company repurchased 4.4 million shares of common stock for $700 million.
Raytheon's bookings were $6.96 billion in Q3 2017, slightly higher compared to $6.92 billion in Q3 2016. The Company's backlog was $36.7 billion at the end of the reported quarter, an increase of approximately $950 million versus the prior year's comparable quarter.
For FY17, Raytheon is forecasting earnings to be $7.45 to $7.55 per share versus the previous guidance of $7.35 to $7.50 per share, while revenue is expected to be in the range of $25.3 billion to $25.6 billion.
Stock Performance Snapshot
November 24, 2017 - At Friday's closing bell, Raytheon's stock slightly climbed 0.32%, ending the trading session at $186.06.
Volume traded for the day: 434.28 thousand shares.
Stock performance in the last three-month – up 4.51%; previous six-month period – up 13.94%; past twelve-month period – up 25.82%; and year-to-date – up 31.03%
After last Friday's close, Raytheon's market cap was at $54.09 billion.
Price to Earnings (P/E) ratio was at 25.05.
The stock has a dividend yield of 1.71%.
The stock is part of the Industrial Goods sector, categorized under the Aerospace/Defense Products & Services industry. This sector was up 0.1% at the end of the session.
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