Raytheon (NYSE: RTN) — one of 30 companies listed on Executive Mosaic’s GovCon Index — has reported third quarter earnings of $1.47 per share, a 10.9 percent decline from the same period in 2014 and 4 cents above Wall Street expectations.
Raytheon held to its full-year earnings outlook of $6.47-to-$6.62 per share and said third quarter results included a 9-cent impact the company expected from accounting adjustments related to its June purchase of controlling ownership in commercial cybersecurity provider Websense.
Raytheon invested $1.9 billion in Austin, Texas-based Websense for a push to offer its defense and intelligence market-oriented cyber products and services to commercial sector customers.
Revenue for the Waltham, Mass.-based defense technology maker climbed 5.64 percent from the same quarter in 2014 to $5.78 billion on Patriot missile system and other weapons sales.
Wall Street analysts had forecasted $5.76 billion in sales for the quarter.
Raytheon also raised its full-year outlook to a range of $23 billion-to-$23.3 billion from the prior $22.7 billion-$23.2 billion guidance.
Operating cash flow from continuing operations nearly doubled to $1.1 billion in the quarter from $423 million in the same period last year from what Raytheon called favorable working capital the timing of some cash tax payments.
Total backlog as of the third quarter’s end was $33.6 billion, approximately $300 million higher than the same period last year; and funded backlog was $24.4 billion, nearly $1.5 billion above fiscal 2014 third quarter figures, or 6.43 percent.
Third quarter sales in Raytheon’s integrated defense systems segment rose 7 percent year-over-year and missile systems climbed 11 percent from the same quarter in 2014.
Space and airborne systems showed a 4-percent sales decline from the prior year period and the based intelligence, information and systems segment fell 0.8 percent.
Raytheon shares have climbed 4.15 percent since the year’s start and are up 14.83 percent over the last 12 months.