Raytheon Earnings: Solid Performance Tops Wall Street Analyst Estimates

Raytheon Co. (NYSE:RTN) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Despite topping analyst estimates, investors were not impressed by the year-over-year declines. Shares are down 3.26%.

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Raytheon Co. Earnings Cheat Sheet

Results: Net income decreased -13.63% to $469 million ($1.42 per diluted share) in the quarter versus a net gain of $543 million in the year-earlier quarter.

Revenue: Decreased 0.02% to $6.44 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Raytheon Co. reported adjusted net income of $1.60 per share. By that measure, the company beat the mean analyst estimate of $1.31. It beat the average revenue estimate of $6.41 billion.

Quoting Management: “Raytheon’s solid operating performance in 2012 was a result of our continued focus on improving productivity and program execution, which delivered value to both our customers and shareholders,” said William H. Swanson, Raytheon’s Chairman and CEO…

…Customer demand for advanced technologies and affordable solutions drove strong orders for both the fourth quarter and the year, and resulted in a record funded backlog.”

Key Stats:

Revenue increased 6.53% from $6.05 billion in the previous quarter. Net income decreased 6.2% from $500 million in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $1.29 to a profit $1.26. For the current year, the average estimate has moved up from a profit of $5.35 to a profit of $5.55 over the last ninety days.

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(Company fundamentals provided by Xignite Financials.)