The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Raytheon missed on revenue and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank, and earnings per share increased significantly.
Margins grew across the board.
Raytheon chalked up revenue of $6.44 billion. The 16 analysts polled by S&P Capital IQ predicted revenue of $6.73 billion. Sales were 6.4% lower than the prior-year quarter's $6.89 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $1.74. The 18 earnings estimates compiled by S&P Capital IQ forecast $1.35 per share on the same basis. GAAP EPS of $1.57 for Q4 were 34% higher than the prior-year quarter's $1.17 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 22.0%, 200 basis points better than the prior-year quarter. Operating margin was 13.4%, 170 basis points better than the prior-year quarter. Net margin was 8.4%, 170 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $6.01 billion. On the bottom line, the average EPS estimate is $1.21.
Next year's average estimate for revenue is $25.12 billion. The average EPS estimate is $5.26.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Raytheon is outperform, with an average price target of $49.56.
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