Raytheon (NYSE: RTN) — listed both in Executive Mosaic’s GovCon Index and the S&P 500 – has reported higher sales for its first quarter on global demand for its weapons and lifted its full-year earnings guidance despite a year-over-year profit decline.
The Waltham, Mass.-based missile maker said first quarter revenue increased 8.88 percent from the same period last year to $5.76 billion on sales of its Patriot air and missile defense system, Paveway bomb and Advanced Medium-Range Air-to-Air Missile to customers in the U.S., Middle East and North Africa.
Revenue includes $136 million in contributions from Forcepoint, a cybersecurity product joint venture Raytheon invested $1.7 billion and holds an 80-percent stake in.
Sales in the company’s Dulles, Va.-based intelligence segment increased 2.05 percent to $1.49 billion on cyber and special missions program volume.
Earnings came in at $1.43, well below $1.79 from last year, to exceed Wall Street estimates by 5 cents with total net profit down 26.89 percent to $405 million.
The company recognized an 8-cent impact from accounting adjustments related to Forcepoint in its earnings figure and also included 42 cents positive on the settlement with the U.K.’s government on a canceled passenger information system contract.
Raytheon lifted its full-year earnings guidance to a range of $6.93-to-$7.13 per share from the previous $6.80-$7.00 EPS outlook in part on a lower effective tax rate and the company left its revenue forecast unchanged at $24 billion-to-$24.5 billion.
As of Wednesday’s close, shares in Raytheon are up 4.29 percent from the year’s start and 20.38 percent over 12 months compared to the S&P 500’s respective gain of 2.51 percent year-to-date and decline of 0.65 percent over 52 weeks.
