Earnings Preview: Raytheon

| About: Raytheon Company (RTN)

Raytheon Company (NYSE:RTN) is expected to report Q4 earnings Thursday, January 29, before the market opens with a conference call scheduled for 9:00 am ET.


Analysts are looking for EPS of $1.11 on revenue of $6.21B. The consensus range is $1.07-$1.17 for EPS, and $5.94B-$6.48B for revenue, according to First Call. The company raised its FY08 EPS guidance when it reported its Q3 earnings results. It raised its FY08 EPS guidance to $3.95-$4.00 from $3.80-$3.95, the consensus for FY08 EPS is $4.04. The company expects FY08 revenue of $22.6B-$23.1B vs consensus $23.26B.

Analyst Views

Raytheon was upgraded to Buy from Neutral at Goldman in early January. The firm does not see downside risk to defense budgets until 2011, which is a positive for defense pure-play Raytheon. The company raised its price target for the company to $57 from $53.

Credit Suisse also upgraded the company in January to Outperform from Neutral. The firm said Defense generally offers better visibility than commercial aerospace and early signs from the Obama Administration suggest modest stability in defense outweigh poor visibility elsewhere. The analyst expects the market to favor execution and cash flow in 2009 and upgraded Raytheon.