Raytheon Company Third Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Raytheon Company (NYSE:RTN) will unveil its latest earnings on Thursday, October 27, 2011. 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 net income of $1.33 per share, a rise of 5.6% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved up from $1.25. Between one and three months ago, the average estimate moved up. It has risen from $1.32 during the last month. Analysts are projecting profit to rise by 10.4% versus last year to $5.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 7 cents, reporting profit of $1.23 per share against a mean estimate of net income of $1.16 per share.

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Wall St. Revenue Expectations: On average, analysts predict $6.38 billion in revenue this quarter, a rise of 1.8% from the year ago quarter. Analysts are forecasting total revenue of $25.76 billion for the year, a rise of 2.3% 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 second quarter, profit rose more than twofold to $438 million ($1.23 a share) from $208 million (55 cents a share) the year earlier, exceeding analyst expectations. Revenue rose 4.2% to $6.22 billion from $5.97 billion.

Key Stats:

Revenue has risen the past four quarters. Revenue rose 0.1% in the first quarter from the year earlier, climbed 3.3% in the fourth quarter of the last fiscal year from the year-ago quarter and 1.1% in the third quarter of the last fiscal year.

The increase in profit in the second quarter broke a streak of two consecutive quarters of year-over-year profit decreases. The figure dropped 13.7% in the first quarter and 8.9% in the fourth quarter of the last fiscal year.

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 September 23, 2011 to October 21, 2011, the stock price had risen $5.07 (13%) from $38.90 to $43.97. The stock price saw one of its best stretches over the last year between December 29, 2010 and January 7, 2011 when shares rose for eight-straight days, rising 10.6% (+$4.64) 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% (-$4.63) over that span. Shares are down 74 cents (-1.7%) year to date.

(Source: Xignite Financials)

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