Lower-Than-Expected Guidance Sends Raytheon Company (RTN …
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Published: Jan 29, 2015 at 1:12 pm EST
Raytheon Company (NYSE:RTN) released its fourth-quarter (4QFY14) financial performance before the market opened on Thursday. Raytheon reported a beat on earning per share (EPS), but missed profit forecast estimates; following the news, the stock is down by 5.7% as of 12:45 PM EST.
The company reported revenue of $6.14 billion, showing an increment of 4.6% year-over-year (YoY) and meeting analyst revenue estimates of $6.14 billion. It reported EPS of $1.86 for 4Q, beating analysts’ estimates of $1.797.
The Integrated Defense System (IDS) segment at Raytheon reported 4Q sales of $1.6 million, an increase of 4% YoY; this was due to the completion of the missile radar program on time. The Intelligence, Information, and Services (IIS) segment reported 4Q earnings of $1.5 billion up 5% year-over-year (YoY), due to the higher volume on classified programs.
The Missile system (MS) segment had 4Q sales of $1.7 billion, which was up 5% compared to the same quarter the year before; the higher sales were attributed to elevated volumes of medium air-to-air missiles and sea sparrow missiles. The last segment, Space and Airborne (SAS) was up by 3%, reporting a figure of $1.6 billion; the increase was triggered by higher volume on the electronic warfare system program.
The operating margin for the 4Q came in at 14.1%, compared to 12.1% in the same quarter last year. Gross margin came in at 24.11%, compared to 20.95% reported in 4QFY13.
The company also reported its future outlook for fiscal year 2015. The revenues are expected to fall between $22.3 billion and $22.8 billion, while EPS is expected to fall in the $5.49-5.64 range. The analysts were expecting EPS of $6.89 for the year, and revenues of $22.5 billion, which sent the stock trading down.
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Lower-Than-Expected Guidance Sends Raytheon Company (RTN …
