Raytheon: A Safe Investment For A Dangerous World
Tue, Apr. 26, 11:33 AM
- Lockheed Martin (LMT +1.5%) is higher after reporting a Q1 earnings miss but better than expected revenues while raising its earnings forecast for the year, as the top weapons supplier to the U.S. government benefits from sales of its F-35 fighter jet and its recent acquisition of helicopter maker Sikorsky Aircraft.
- LMT raises its FY 2016 EPS guidance to $11.50-$11.80 from a January forecast of $11.45-$11.75 and in-line with $11.77 analyst consensus, slightly raises its full-year revenue outlook to $49.6B-$51.1B from $49.5B-$51B and $50.35B analyst consensus, and lifts its operating profit forecast to $5.625B-$5.775B from $5.6B-$5.75B.
- RBC aerospace analyst Robert Stallard is "encouraged by the revenue performance, which is a sign of things to come as its customer end markets improve. We had not expected a guidance increase at this early stage of the year, so that is another bonus - more than offsetting the cost of redundancies."
- LMT's positive outlook sets the stage for defense peers Boeing (BA +0.6%), Northrop Grumman (NOC +0.8%), General Dynamics (GD +1.1%) and Raytheon (RTN +0.9%), which all report later this week.
- Now read Traditional values of Lockheed Martin's equity are inaccurate
Mon, Mar. 7, 4:05 PM
- The 9th U.S. Circuit Court of Appeals in California revives a $1B whistleblower lawsuit accusing Raytheon (RTN -2%) of fraudulently overbilling the U.S. government under a contract to develop a weather sensor for an environmental satellite system.
- The court says the whistleblower's claims go beyond publicly disclosed problems in developing the National Polar Orbiting Operational Environmental Satellite System, which suffered from delays and cost overruns.
- The decision overturns a U.S. District judge's 2013 dismissal of the lawsuit.
Thu, Feb. 11, 2:22 PM
- Boeing (BA -8.9%) maintains its share price plunge and is causing the Dow to underperform the other major averages following a report that the SEC is probing the company’s accounting methods on its 787 Dreamliner and the 747 aircraft; Boeing has refused to comment.
- The day's decline roughly matches the 8.9% drop late last month when the company issued disappointing financial guidance. which had been the biggest single-day drop since 2001.
- The news also has sparked selling in other aerospace stocks at a time when investors in the sector have become increasingly nervous that booming aircraft orders could founder as Boeing and Airbus (OTCPK:EADSF, OTCPK:EADSY) boost production to record levels: LMT -3.2%, NOC -3.2%, RTN -3.4%.
- S&P Global Market Intelligence’s Jim Corridore retains his Buy rating, saying that while the news is "a near-term negative that may overhang the stock and could lead to a large charge or fine, we remain positive on the large backlog of business Boeing has accumulated, and remain positive on overall aerospace demand."
- Buckingham Research reiterates an Underperform rating with a $108 price target in a report that preceded the SEC story, citing below consensus free cash flow and pricing pressure as key catalysts for a downward move.
- Earlier: WSJ: Boeing to cut jobs as Airbus competition heats up (Feb. 10)
Dec. 8, 2015, 9:32 AM
- Raytheon's (NYSE:RTN) work on a new ground control system for GPS satellites is "a disaster," said General John Hyten, commander of Air Force Space Command, declaring that the Pentagon would undertake "significant" changes with the company to address the issues.
- Hyten said he attended a "deep dive" on the program hosted by the Pentagon's chief arms buyer, Frank Kendall, last Friday, and said significant changes were planned to get the program on track.
- RTN -1.7% premarket
Nov. 17, 2015, 12:57 PM
- Rising interest rates have historically been good news for Boeing (BA +1.1%) and other aerospace and defense companies, Canaccord analysts say, as strengthening commercial orders correspond with outperformance by both Boeing stock and the broader sector.
- Commercial transport orders over the past three significant tightening cycles rose by an average of 7% and 140% in the 12- and 24-month time periods after rates started to increase, and total commercial backlog increased over the same periods by an average of 3% and 43%, the firm says.
- BA stock has outperformed the broader market over the past two tightening cycles by an average of 19%-20% annually while rates are rising, Canaccord adds.
- Also today: LMT +1.8%, RTN +1.6%, COL +1.3%, NOC -0.3%.
Nov. 16, 2015, 10:33 AM
- Aerospace and defense shares are on the rise after calls to increase efforts to crush ISIS, the terrorist group responsible for Friday's attacks in France.
- Previously: World leaders wrap up G20 summit (Nov. 16 2015)
- Previously: French warplanes strike Islamic State targets in Syria (Nov. 15 2015)
- Related tickers: General Dynamics (GD +0.6%), Boeing (BA +0.2%), Northrop Grumman (NOC +3.2%), Lockheed Martin (LMT +2.5%), Raytheon (RTN +2.4%), Orbital ATK (OA +3.8%), Rolls-Royce (OTCPK:RYCEY +2.2%), Huntington Ingalls (HII +1.1%), Honeywell (HON +0.9%), United Technologies (UTX +0.4%), Airbus (OTCPK:EADSF), ITT (ITT +0.6%), Textron (TXT +1.7%), L-3 Communications (LLL +2.3%), BAE Systems (OTCPK:BAESY +2%), Finmeccanica (OTCPK:FINMY), Rockwell Collins (COL +1.7%).
Jul. 23, 2015, 10:20 AM
- Raytheon (RTN +6%) opens with strong gains after posting better than expected Q2 earnings and revenues, aided by strong international bookings and the favorable impact of a tax settlement.
- RTN lowers its 2015 EPS guidance to $6.47-$6.62 from its earlier outlook for $6.67-$6.82 to reflect April's $1.6B deal to acquire control of Websense, in line with analyst expectations, but raises its 2015 sales guidance to $22.7B-$23.2B from $22.3B-$22.8B, with Websense expected to add an extra $100M and the unit that builds the Patriot missile defense system boosting revenue by $300M.
- Patriot sales helped lift Q2 revenues by 2.8% to $5.85B, with $7.6B in orders boosting its book-to-bill ratio to 1.3.
- CFO Toby O'Brien says RTN expects the Websense acquisition to be accretive to earnings in 2-3 years, instead of 3-4 years as initially expected.
Apr. 23, 2015, 7:19 AM
- Raytheon (NYSE:RTN): Q1 EPS of $1.78 beats by $0.36.
- Revenue of $5.29B (-4.0% Y/Y) beats by $70M.
- Shares +1.19% PM.
Mar. 16, 2015, 3:09 PM
- Raytheon (RTN +2.4%) is in talks to acquire network security company Websense, owned by the Vista Equity Partners P-E firm, likely for more than $1B, Bloomberg reports.
- Websense makes software that blocks websites and lets companies inspect network traffic and filter emails for security and hacking threats.
- RTN in November acquired Blackbird Technologies, a surveillance and cybersecurity company, for $420M to bolster its intelligence business.
Feb. 23, 2015, 8:29 AM
- Raytheon (NYSE:RTN) has begun developing an extended range variant of the Advanced Medium Range Air to Air Missile (AMRAAM) that will be able to intercept at a longer range and higher altitudes.
- "The new missile will be even faster and more maneuverable than the current AMRAAM," said Mike Jarrett, Raytheon vice president of Air Warfare Systems.
- RTN +0.2% premarket
Jan. 29, 2015, 8:39 AM
- Net income of $582M, or 1.88 per share vs. $531M, or $1.66 per share in the same quarter a year ago. Adjusted income of $530M, or $1.71 per share.
- Revenue by segment: Integrated Defense Systems +4%; Intelligence, Information and Services +5%; Missile Systems +5%; and Space and Airborne Systems +3%.
- Bookings fell 5.4% to $7.1B from $7.5B in the prior year period.
- Backlog at the end of 2014 was $33.6B, compared to $33.7B in 2013.
- The company expects full-year 2015 earnings of $6.20-$6.35 per share (adj. $5.49-$5.64) on revenues of $22.3B-$22.8B.
- RTN -2.5% premarket
- Q4 results
Nov. 7, 2014, 7:47 AM
- A Raytheon (NYSE:RTN) team including General Dynamics (NYSE:GD) has secured an initial deal consolidating oversight of rocket facilities at Cape Canaveral in Florida and Vandenberg Air Force Base in California in a contract expected to be worth as much as $2B over 10 years.
- The team will support the launch, testing and tracking of military and commercial rocket launches.
- RTN +0.6%; GD +0.2% premarket
Nov. 4, 2014, 10:40 AM
- Raytheon (RTN +1.8%) has received a $174.5M follow-on contract from the U.S. Air Force to provide field support for high-altitude intelligence, surveillance and reconnaissance and the Distributed Command Ground System (DGCS) mission, marking the 15th year the company successfully partnered with the Air Force for the contract.
- DCGS is a worldwide distributed, network centric, system-of-systems architecture that conducts collaborative intelligence operations.
Feb. 24, 2014, 2:58 PM
- The Pentagon announces plans to shrink the U.S. Army to pre-WW II levels - to fewer than 450K from the current 520K - in order to meet 2015 spending caps.
- Also planned for elimination is the Air Force's fleet of A-10 Warthog close air support planes - a change some influential lawmakers are expected to oppose - to ensure continued funding of Lockheed Martin's (LMT +1.7%) new long-range F-35 bomber and a new aerial refueling tanker.
- Nevertheless, top defense stocks are solidly higher, presumably because the Defense Department envisions warfare being waged using enhanced technologies: BA +1.4%, GD +1.5%, NOC +1.9%, RTN +2.2%, HII +0.9%.
Sep. 20, 2013, 1:19 PM| Sep. 20, 2013, 1:19 PM
Sep. 10, 2013, 3:51 PM
- Jefferies ups the price target on Raytheon (RTN +1.3%) to $87 (from $66) representing a 15% upside from Monday's close.
- Analyst Howard Rubel cites the company's "potential to capture significant international sales, its ongoing efforts to upgrade its product line, share gains in the Electronic Warfare market, and the ability to maintain solid profitability in the face of market declines." Plenty to like there apparently.
- FY13 and FY14 EPS estimates hiked to $5.65 (from $5.60) and $6.25 (from $6.00) respectively.
- Jefferies rates RTN at Buy.
Raytheon Co. develops and manufactures engineering technology for government and commercial use in the areas of defense, government electronics and information technology. It provides state-of-the-art electronics, mission systems integration and other capabilities in the areas of sensing,... More
Sector: Industrial Goods
Industry: Aerospace/Defense - Major Diversified
Country: United States