Raytheon Posts 9% Sales Jump in 1Q on Missile Sales, Lifts Full-Year Earnings Outlook Despite 1Q Profit Decline

Raytheon logoRaytheon (NYSE: RTN) — listed both in Executive Mosaic’s GovCon Index and the S&P 500 — has reported higher sales for its first quarter on global demand for its weapons and lifted its full-year earnings guidance despite a year-over-year profit decline.

The Waltham, Mass.-based missile maker said first quarter revenue increased 8.88 percent from the same period last year to $5.76 billion on sales of its Patriot air and missile defense system,  Paveway bomb and Advanced Medium-Range Air-to-Air Missile to customers in the U.S., Middle East and North Africa.

Revenue includes $136 million in contributions from Forcepoint, a cybersecurity product joint venture Raytheon invested $1.7 billion and holds an 80-percent stake in.

Sales in the company’s Dulles, Va.-based intelligence segment increased 2.05 percent to $1.49 billion on cyber and special missions program volume.

Earnings came in at $1.43, well below $1.79 from last year,  to exceed Wall Street estimates by 5 cents with total net profit down 26.89 percent to $405 million.

The company recognized an 8-cent impact from accounting adjustments related to Forcepoint in its earnings figure and also included 42 cents positive on the settlement with the U.K.’s government on a canceled passenger information system contract.

Raytheon lifted its full-year earnings guidance to a range of $6.93-to-$7.13 per share from the previous $6.80-$7.00 EPS outlook in part on a lower effective tax rate and the company left its revenue forecast unchanged at $24 billion-to-$24.5 billion.

As of Wednesday’s close, shares in Raytheon are up 4.29 percent from the year’s start and 20.38 percent over 12 months compared to the S&P 500’s respective gain of 2.51 percent year-to-date and decline of 0.65 percent over 52 weeks.

You may also be interested in...

ARC

GAO Wants Transcom to Address Procurement Issues in Military Household Goods Shipping Contract

The Government Accountability Office has recommended that U.S. Transportation Command address the deficiencies in its procurement process that resulted in the award of the potential $7.2B Global Household Goods Contract to American Roll-on Roll-off Carrier Group, Military Times reported Thursday.

Michael Hartenstein Director LexisNexis Risk Solutions

Secret Service Vet Michael Hartenstein Takes Director Role at LexisNexis Risk Solutions

Michael Hartenstein, a 22-year veteran of the U.S. Secret Service, has joined LexisNexis Risk Solutions as director of federal public safety business development. Hartenstein will oversee the development of strategic customer plans and support the creation of service offerings for public safety and law enforcement agencies, LexisNexis Risk Solutions said Thursday.