The 10-second takeaway
For the quarter ended June 30 (Q2), Raytheon beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue expanded slightly. Non-GAAP earnings per share grew significantly. GAAP earnings per share increased.
Gross margins shrank, operating margins grew, net margins increased.
Raytheon booked revenue of $6.12 billion. The 17 analysts polled by S&P Capital IQ foresaw a top line of $5.81 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 $1.64. The 19 earnings estimates compiled by S&P Capital IQ predicted $1.31 per share. Non-GAAP EPS of $1.64 for Q2 were 16% higher than the prior-year quarter's $1.41 per share. GAAP EPS of $1.50 for Q2 were 6.4% higher than the prior-year quarter's $1.41 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 22.3%, 10 basis points worse than the prior-year quarter. Operating margin was 12.5%, 10 basis points better than the prior-year quarter. Net margin was 8.0%, 10 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 $23.52 billion. The average EPS estimate is $5.44.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Raytheon is hold, with an average price target of $63.53.
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