Raytheon Company Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Raytheon Company (NYSE:RTN) will unveil its latest earnings on Thursday, January 26, 2012. Raytheon provides electronics, mission systems integration and other capabilities to customers in defense, homeland security and other government markets throughout the world.

Raytheon Company Earnings Preview Cheat Sheet.

Wall St. Earnings Expectations: The average estimate of analysts is for profit of $1.34 per share, a decline of 14.6% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from $1.39. Between one and three months ago, the average estimate moved down. It has been unchanged at $1.34 during the last month. Analysts are projecting profit to rise by 9.5% versus last year to $5.05.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 6 cents, reporting net income of $1.39 per share against a mean estimate of profit of $1.33 per share.

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Wall St. Revenue Expectations: On average, analysts predict $6.75 billion in revenue this quarter, a decline of 1.9% from the year ago quarter. Analysts are forecasting total revenue of $25.14 billion for the year, a decline of 0.2% from last year’s revenue of $25.18 billion.

Analyst Ratings: Analysts seem relatively indifferent about Raytheon Company with 10 of 18 analysts surveyed maintaining a hold rating.

A Look Back: In the third quarter, profit fell 31.2% to $501 million ($1.43 a share) from $728 million ($1.94 a share) the year earlier, but exceeded analyst expectations. Revenue fell 2.2% to $6.13 billion from $6.27 billion.

Key Stats:

A year-over-year revenue decrease in the third quarter snapped a streak of three consecutive quarters of revenue increases. Revenue rose 4.2%in the second quarter, 0.1% in the first quarter and 3.3% in the fourth quarter of the last fiscal year.

The decrease in profit in the third quarter came after net income rose in the previous quarter. In the second quarter, net income rose more than twofold.

Competitors to Watch: The Boeing Company (NYSE:BA), Northrop Grumman Corp. (NYSE:NOC), General Dynamics Corp. (NYSE:GD), Lockheed Martin Corp. (NYSE:LMT), Kratos Defense & Security Solutions, Inc (NASDAQ:KTOS), ITT Corporation (NYSE:ITT), Rockwell Collins, Inc. (NYSE:COL), Honeywell Intl. Inc. (NYSE:HON), FLIR Systems, Inc. (NASDAQ:FLIR), and Alliant Techsystems Inc. (NYSE:ATK).

Stock Price Performance: During November 21, 2011 to January 20, 2012, the stock price had risen $6.91 (16.1%) from $42.97 to $49.88. The stock price saw one of its best stretches over the last year between December 14, 2011 and December 29, 2011 when shares rose for 11-straight days, rising 9.2% (+$4.11) over that span. It saw one of its worst periods between July 1, 2011 and July 18, 2011 when shares fell for 11-straight days, falling 9.3% (-$4.59) over that span.

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

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com