Raytheon Company Earnings: Higher-Than-Expected Net Income

S&P 500 (NYSE:SPY) component Raytheon Company (NYSE:RTN) reported net income above Wall Street’s expectations for the second quarter. Raytheon provides electronics, mission systems integration and other capabilities to customers in defense, homeland security and other government markets throughout the world.

Investing Insights: Is TV the Next Bullish Catalyst for Apple’s Stock?

Raytheon Company Earnings Cheat Sheet

Results: Net income for Raytheon Company rose to $471 million ($1.41 per share) vs. $438 million ($1.23 per share) in the same quarter a year earlier. This marks a rise of 7.5% from the year-earlier quarter.

Revenue: Fell 3.7% to $5.99 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Raytheon Company reported adjusted net income of $1.55 per share. By that measure, the company beat the mean estimate of $1.22 per share. Analysts were expecting revenue of $6.03 billion.

Quoting Management: “Raytheon reported solid operating performance in the second quarter driven by strong execution across the Company,” said William H. Swanson, Raytheon’s Chairman and CEO. “As we celebrate our 90th anniversary this month, we continue to build on a long heritage of solving complex customer problems with innovative solutions and world class technology while creating value for shareholders and customers.”

Key Stats:

Last quarter marked the fifth consecutive quarter of increasing gross margins, as the company’s gross margin expanded 1.8 percentage points from the year-earlier quarter to 22.4%. In this period, margins have grown an average of 2.3 percentage points per quarter on a year-over-year basis.

The company has now seen its net income rise for three quarters in a row. In the first quarter, net income rose 16.7% and in the fourth quarter of the last fiscal year, the figure rose 18.3%.

The company has now surpassed analyst estimates for four quarters in a row. It beat the mark by 30 cents in the first quarter, by 39 cents in the fourth quarter of the last fiscal year, and by 6 cents in the third quarter of the last fiscal year.

Revenue has fallen in the past four quarters. Revenue declined 2% to $5.94 billion in the first quarter. The figure fell 6.4% in the fourth quarter of the last fiscal year from the year earlier and dropped 2.2% in the third quarter of the last fiscal year from the year-ago quarter.

Looking Forward: For next quarter, analysts have a more positive outlook about the company’s expected results. The average estimate for the third quarter is $1.29 per share, up from $1.28 ninety days ago. The average estimate for the fiscal year is $5.21 per share, a rise from $5.08 ninety days ago.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

Don’t Miss These Hot Additional Stories:

Netflix: The GREATEST Head Fake?

Ford Earnings: Revenue TOPS Analyst Estimate, Shares UP>>

Is Cisco Systems Stock a BUY or SELL?