More on Raytheon Q4: Net profit flat

Raytheon (RTN) net profit from continuing operations edged up by less than 1% to $467M, with earnings held down by U.S. defense cuts.

Backlog -6.9% to $33.7B at the end of 2013 from a year earlier.

Guidance: 2014 EPS of $6.74-6.89 vs consensus of 6.30, and revenue of $22.5-23B vs $23.7B in 2013 and forecasts of $23.09B.

CFO Dave Wajsgras reckons that we're in the midst of the low point of U.S. military spending, which he pegs as running from mid-2013 to mid-2014, but he expects international bookings to remain strong this year.

Raytheon hopes to book a $500-600M order from Kuwait for the company's Patriot missile system in February, although the firm had hoped to finalize the deal already.

2013 adjusted operating margin was 13.4%, the highest level since 2000, due to cost cuts. However, Wajsgras predicts that the margin will decline to 12.6-12.8% in 2014 as the company starts work on new projects. (PR)


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