The 10-second takeaway
For the quarter ended April 1 (Q1), Raytheon beat expectations on revenues and crushed expectations on earnings per share.
Compared with the prior-year quarter, revenue dropped slightly and GAAP earnings per share increased significantly.
Margins increased across the board.
Raytheon reported revenue of $5.94 billion. The 15 analysts polled by S&P Capital IQ expected to see a top line of $5.77 billion on the same basis. GAAP reported sales were 2.0% lower than the prior-year quarter's $6.06 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
Non-GAAP EPS came in at $1.46. The 16 earnings estimates compiled by S&P Capital IQ forecast $1.18 per share on the same basis. GAAP EPS of $1.32 for Q1 were 25% higher than the prior-year quarter's $1.06 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 21.5%, 240 basis points better than the prior-year quarter. Operating margin was 11.9%, 190 basis points better than the prior-year quarter. Net margin was 7.5%, 120 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $6.06 billion. On the bottom line, the average EPS estimate is $1.25.
Next year's average estimate for revenue is $24.53 billion. The average EPS estimate is $5.09.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Raytheon is outperform, with an average price target of $53.00.
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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings stock holdings. He is the co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Raytheon. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.