The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Raytheon met expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue was unchanged and GAAP earnings per share dropped.
Margins dropped across the board.
Raytheon reported revenue of $6.44 billion. The 18 analysts polled by S&P Capital IQ expected to see a top line of $6.41 billion on the same basis. GAAP reported sales were 0.0% lower than the prior-year quarter's $6.44 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $1.60. The 18 earnings estimates compiled by S&P Capital IQ predicted $1.30 per share. GAAP EPS of $1.42 for Q4 were 4.1% lower than the prior-year quarter's $1.48 per share. (The prior-year quarter included -$0.01 per share in earnings from discontinued operations.)
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 20.9%, 110 basis points worse than the prior-year quarter. Operating margin was 11.7%, 260 basis points worse than the prior-year quarter. Net margin was 7.3%, 110 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $5.81 billion. On the bottom line, the average EPS estimate is $1.28.
Next year's average estimate for revenue is $24.05 billion. The average EPS estimate is $5.46.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Raytheon is hold, with an average price target of $57.53.
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