On April 25, defense contractor Raytheon
- Revenues rose by 5.8%, backed by healthy 13%, 15%, and 17% growth in integrated defense systems, missile systems, and network-centric systems, respectively.
- The decrease in operating cash flow was primarily due to a $400 million discretionary cash contribution made to the company's pension plans in the first quarter 2007. Back that out, however, and cash from ops is still negative.
- The stock checks in with a three-star rating in Motley Fool CAPS.
(Figures in millions, except per-share data)
Income Statement Highlights
|
Q1 2007 |
Q1 2006 |
Change |
|
|---|---|---|---|
|
Sales |
$4,928 |
$4,660 |
5.8% |
|
Net Profit* |
$314 |
$272 |
15.4% |
|
EPS* |
$0.71 |
$0.61 |
16.4% |
|
Diluted Shares |
453.5 |
448.8 |
1% |
Get back to basics with a look at the income statement.
Margin Checkup
|
Q1 2007 |
Q1 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
19.2% |
18.3% |
0.9 |
|
Operating Margin |
10.4% |
9.3% |
1.1 |
|
Net Margin |
6.4% |
5.8% |
0.5 |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$1,660 |
$944 |
75.8% |
|
Accounts Rec. |
$174 |
$379 |
(54.1%) |
|
Inventory |
$499 |
$1,951 |
(74.4%) |
|
Liabilities |
Q1 2007 |
Q1 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$833 |
$1,058 |
(21.3%) |
|
Long-Term Debt |
$3,283 |
$3,962 |
(17.1%) |
The balance sheet reflects the company's health.
Cash Flow Highlights
|
Q1 2007 |
Q1 2006 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
($416) |
($20) |
N/A |
|
Capital Expenditures |
$39 |
$35 |
11.4% |
|
Free Cash Flow |
($455) |
($55) |
N/A |
Free cash flow is a Fool's best friend.
Related Foolishness:
- Foolish Forecast: Raytheon Rumbles
- Foolish Forecast: Get to Know Northrop
- Foolish Forecast: Locking In on Lockheed
Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.
