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This is a Cestrian Capital Research “Ongoing Coverage” note on The Raytheon Company (RTN).
Background
As regular readers will be aware, we cover Raytheon as part of our “Invest in the New Space Race” equity research service. The company’s Space & Airborne Systems division reported revenue of $6.7bn in 2018, making it a major player in the space sector. Our Initiating Coverage note on RTN can be found here >> Long Range Growth Opportunity - The Raytheon Company, and we recently posted an ‘Anticipating Earnings’ note ahead of Q1 results, which you can read here >> Anticipating Q1 Earnings - The Raytheon Company.
The company posted its Q1 2019 results today, delivering a 2% beat on revenues and a 12% beat on EPS. Pretty good you would think. But the share price reacted negatively, being down over 5% on the day at one point and closing at $177.42, a 4.4% drop on the day. At the time of writing, the stock remains around that level in aftermarket trading.
In our February ‘Initiating Coverage’ note we rated RTN as a Buy-Long Term Hold and we re-iterated that view in our pre-earnings review on 17 April. So
