Raytheon Fourth Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Raytheon (NYSE:RTN) will unveil its latest earnings tomorrow, Thursday, January 24, 2013. Raytheon provides electronics, mission systems integration and other capabilities to customers in defense, homeland security and other government markets throughout the world.

Raytheon Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for profit of $1.30 per share, a decline of 25.3% from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from $1.33. Between one and three months ago, the average estimate moved down. It has been unchanged at $1.30 during the last month. For the year, analysts are projecting net income of $5.54 per share, a decline of 6.1% from last year.

Past Earnings Performance: The company has beaten estimates the last four quarters and is coming off a quarter where it topped forecasts by 23 cents, reporting profit of $1.50 per share against a mean estimate of net income of $1.27 per share.

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Analyst Ratings: There are mostly holds on the stock with 10 of 17 analysts surveyed giving that rating.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.63 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term. The company improved this liquidity measure from 1.62 in the second quarter to the last quarter driven in part by an increase in current assets. Current assets increased 5.5% to $9.26 billion while liabilities rose by 4.3% to $5.67 billion.

Wall St. Revenue Expectations: On average, analysts predict $6.41 billion in revenue this quarter, a decline of 0.5% from the year-ago quarter. Analysts are forecasting total revenue of $24.39 billion for the year, a decline of 1.9% from last year’s revenue of $24.86 billion.

Here’s how Raytheon traded following its last earnings report 3 months ago and leading up to its upcoming earnings report this week:


Key Stats:

The company is looking to get back on track with this earnings announcement after a profit drop last quarter snapped a positive string of results. Net income rose 18.3% in the fourth quarter of the last fiscal year, 16.7% in the first quarter and 7.5% in the second quarter before declining in the third quarter.

On the top line, the company is hoping to use this earnings announcement to snap a string of four-straight quarters of revenue decreases. Revenue fell 6.4% in the fourth quarter of the last fiscal year, 2% in first quarter and 3.7% in the second quarter and then fell again in the third quarter.

A Look Back: In the third quarter, profit fell 0.2% to $500 million ($1.50 a share) from $501 million ($1.43 a share) the year earlier, but exceeded analyst expectations. Revenue fell 1.4% to $6.04 billion from $6.13 billion.

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