Raytheon Crushes Earnings Estimates

Raytheon (NYSE: RTN) reported earnings on July 26. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended July 1 (Q2), Raytheon met expectations on revenue and crushed expectations on earnings per share.

Compared to the prior-year quarter, revenue dropped and GAAP earnings per share expanded.

Margins improved across the board.

Revenue details
Raytheon reported revenue of $5.99 billion. The 18 analysts polled by S&P Capital IQ foresaw revenue of $6.02 billion on the same basis. GAAP reported sales were 3.7% lower than the prior-year quarter's $6.22 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
EPS came in at $1.55. The 16 earnings estimates compiled by S&P Capital IQ averaged $1.24 per share. GAAP EPS of $1.41 for Q2 were 15% higher than the prior-year quarter's $1.23 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
For the quarter, gross margin was 22.4%, 180 basis points better than the prior-year quarter. Operating margin was 12.4%, 130 basis points better than the prior-year quarter. Net margin was 7.9%, 90 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $6.17 billion. On the bottom line, the average EPS estimate is $1.31.

Next year's average estimate for revenue is $24.56 billion. The average EPS estimate is $5.32.

Investor sentiment
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Raytheon is hold, with an average price target of $55.00.

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