The 10-second takeaway
For the quarter ended March 31 (Q1), Raytheon beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped slightly. Non-GAAP earnings per share grew significantly. GAAP earnings per share expanded.
Margins grew across the board.
Raytheon booked revenue of $5.88 billion. The 15 analysts polled by S&P Capital IQ anticipated sales of $5.69 billion on the same basis. GAAP reported sales were the same as the prior-year quarter's.
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 $1.56. The 19 earnings estimates compiled by S&P Capital IQ predicted $1.28 per share. Non-GAAP EPS of $1.56 for Q1 were 18% higher than the prior-year quarter's $1.32 per share. (The prior-year quarter included -$0.01 per share in earnings from discontinued operations.) GAAP EPS of $1.48 for Q1 were 12% higher than the prior-year quarter's $1.32 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 21.7%, 20 basis points better than the prior-year quarter. Operating margin was 12.0%, 10 basis points better than the prior-year quarter. Net margin was 8.3%, 80 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $5.84 billion. On the bottom line, the average EPS estimate is $1.31.
Next year's average estimate for revenue is $23.71 billion. The average EPS estimate is $5.45.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Raytheon is hold, with an average price target of $58.60.
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