ThreeÂ government contractors listed in Executive Mosaic’s GovCon IndexÂ reported second quarter financial resultsÂ before U.S. markets opened Wednesday.
Raytheon (NYSE: RTN) and L-3 Communications (NYSE: LLL) both lifted full-year earnings and revenue guidance Thursday on second quarter results that topped the consensus analyst outlooks forÂ each figure.
Raytheon cited sales of its Paveway bomb and activity in its cybersecurity and special missions program lines, while L-3 attributed higher revenue on business jet deliveries to foreign military sales customers.
Leidos Holdings (NYSE: LDOS) stated earnings per share and revenueÂ below the consensus Wall Street expectation but boosted its full-year EPS guidance with a narrowed outlook for sales.
Leidos’ updated forecastÂ for 2016 does not factor in impacts from the company’s impending merger with Lockheed Martin‘s (NYSE: LMT) information systems and global solutions segment scheduled to close in mid-August.
Reston, Virginia-based Leidos will hold anÂ investor dayÂ Monday at the New York Stock Exchange to discuss the deal and offer an updated financial outlook on the future combined company, while its annual shareholder meeting is scheduled for Aug. 8.
As of Wednesday’s close, theÂ GovCon Index has risenÂ 7.86Â percent year-to-date and 9.93Â percent for 12 months.
By comparison, the S&P 500 composite index that includes 11 GCI companies hasÂ climbed 6 percent for 2016 so far and 4.79 percent over 52 weeks.
Raytheon (An S&P 500 stock):
- Earnings per share: $2.38Â beats Wall Street estimate of $1.74
- Net income: $704 million, up 39.96 percent from prior year period
- Revenue: $6.03Â billion, upÂ 3.07Â percent, beats Wall Street estimate of $5.83 billion
- Earnings lifted to $7.13-$7.33 per share from prior $6.93-$7.13Â range
- Revenue unchanged at $24 billion-$24.5 billion
- Earnings include tax-free gain of 53 cents, or $158 million, Â in June restructure of ThalesRaytheonSystems joint venture
- Sales increase driven by Paveway bombs, cybersecurity, special mission programs and the Forcepoint joint venture
- Stock is up 8.86 percentÂ from the year’s start and 30.26Â over 12 months
L-3 Communications (An S&P 500 stock):
- Earnings per share: $1.88 beats Wall Street estimate ofÂ $1.69
- Net income: $147 million, up 26.72 percent from prior year period
- Revenue: $2.66 billion, up 4.72Â percent, beats Wall Street estimate of $2.49 billion
- Earnings lifted to $7.65-$7.85 per share from prior $7.55-$7.75 range
- Revenue lifted to $10.15 billion-$10.25 billion from prior $9.95 billion-$10.15 billion range
- Organic revenue excluding acquisitions and February NSS segmentÂ saleÂ up nearly 7 percent on aerospace systems sales
- Operating margin at 9.3 percent versus 6 percent in same period last year
- Stock isÂ up 23.38 percent from the year’s start andÂ 22.2Â percentÂ over 12 months
- Earnings: 68Â cents misses Wall Street estimate ofÂ 73Â cents
- Net income: $41 million, up 10.81 percent from prior year period
- Revenue: $1.29 billion, upÂ 2.38 percent, misses Wall Street estimate of $1.29 billion
- Earnings lifted to $2.85-$3.05 per share from prior $2.75-$2.95 outlook
- Revenue narrowed to $5.1 billion-$5.2 billion from prior $5.1 billion-$5.3 billion outlook
- Sales increase helped by activityÂ under a logistics contract with theÂ U.K. defense ministry
- Net income includes $15 million in acquisition and integration costs for Lockheed IS&GS merger
- Stock isÂ downÂ 9.95Â percentÂ from the year’s start and up 35.29Â percentÂ over 12 months
- Stock has fallenÂ 2.48 percent since the merger’s Jan. 26 announcement