Raytheon Boosts 2019 Outlook
July 25 2019 - 8:06AM
Dow Jones News
By Doug Cameron
Raytheon Co. said Thursday that export sales helped drive record
bookings as it joined U.S. defense peers in boosting full-year
profit guidance.
The missiles and missile-defense specialist said sales and
profits exceeded expectations in the June quarter as its backlog
climbed to $43.1 billion, up 8% from a year ago.
Domestic and overseas military spending has driven improved
outlooks for most of the big defense contractors, with Lockheed
Martin Corp., Northrop Grumman Corp. and General Dynamics Corp. all
boosting their 2019 outlooks.
Boeing Co. has shelved financial guidance, though the backlog at
its defense arm dropped in the June quarter.
Raytheon's outlook is notable as the company's growth outlook
underpins its plans to merge with United Technologies Corp., to
form the world's second-largest aerospace and defense company by
sales after Boeing.
The proposed deal has received a mixed reception from investors,
with some activists pushing for it to be dropped, arguing that
Raytheon's defense-focused business doesn't mix well with the more
commercially focused United Technologies aerospace business.
Raytheon's profits rose to $813 million in the June quarter from
$791 million a year earlier, with per-share earnings climbing to
$2.92 from $2.78. Sales rose 8.1% to $7.16 billion.
Full-year sales guidance was raised by $200 million to $29.05
billion at the midpoint, with lower interest expense raising its
EPS outlook by 10 cents to $11.60 at the midpoint.
Raytheon shares rose 1% in pre-open trade.
Write to Doug Cameron at doug.cameron@wsj.com
(END) Dow Jones Newswires
July 25, 2019 07:51 ET (11:51 GMT)
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