Defense contractor Raytheon Co. (RTN) on Thursday boosted its forecast for the full-year, after reporting an increase in its second-quarter earnings, helped by strong sales performance across its major segments.
The Raytheon-based company posted income from continuing operations of $504 million or $1.24 per share, compared to $432 million or $0.99 per share in the second quarter of 2008.
Net income attributable to Raytheon rose to $489 million or $1.23 per share from $426 million or $0.99 per share in the prior year quarter.
The company earned $501 million during the quarter, up from $432 million in the same quarter last year.
On average, 19 analysts surveyed by Thomson Reuters expected the company to report earnings of $1.13 per share for the quarter. Analysts' estimates typically exclude special items.
Net sales for the quarter increased to $6.12 billion from $5.87 billion from last year, but fell shy of fifteen analysts' consensus estimate of $6.18 billion.
Segment-wise, Integrated Defense Systems recorded net sales of $1.33 billion in the quarter, up 6% from last year, mainly due to growth on international Patriot programs. Intelligence and Information Systems' net sales decreased 2% to $812 million from $829 million a year ago.
In the quarter, net sales from Missile Systems were $1.38 billion, a 2% rise from $1.36 billion last year. Network Centric Systems' net sales totaled $1.2 billion, up 2% from last year's $1.17 billion.
The company's net sales from Space and Airborne Systems rose 6% to $1.14 billion, primarily due to growth on international airborne tactical radar programs and classified business. Net sales from Technical Services surged 21% to $780 million, boosted by strong growth in training programs.
Total bookings for the second quarter were $7.6 billion, compared to $6.0 billion in the prior year. The company ended the second quarter with a backlog of $37.3 billion, compared to $37.5 billion at the end of the second quarter 2008.
For the first six months of fiscal 2009, income from continuing operations were $961 million or $2.35 per share, higher than $833 million or $1.91 per share in the comparable period. Net sales for the first-half grew to $12 billion from last year's $11.22 billion.
Moving forward to fiscal 2009, Raytheon lifted its outlook for earnings from continuing operations to a range of $4.60 - $4.75 per share from prior range of $4.55 - $4.70 per share.
Net sales for the full year are now projected between $24.5 billion and $25.0 billion, up from previous expectations of $24.4 billion - $24.9 billion. Wall Street analysts estimate earnings of $4.73 per share on revenues of $24.78 billion for 2009.
William Swanson, Raytheon's Chairman and CEO, said, "We are well positioned domestically and internationally on a broad base of programs which create long-term shareholder value."
RTN is currently trading at $45.70, up $0.71 or 1.58%. In the past 52 weeks, shares have been trading in a broad range of $33.20 - $63.86.
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