By Calvin Biesecker
Defense Daily
Raytheon on Thursday posted strong first-quarter financial results, driven by lower taxes, and improved operating performance, and the company increased its guidance this year for sales and earnings.
Lower taxes that went into effect on Jan. 1 have helped underpin solid to strong results for all the major defense companies that reported first quarter financials this week.
Net income at Raytheon increased 25 percent in the quarter to $633 million, or $2.19 a share, from $506 million, or $1.74, a year ago. Excluding discontinued operations, the company reported $2.20 a share, beating the street by nine cents.
Raytheon is one of two contractors, along with Lockheed Martin, developing technology for a next-generation air-launched nuclear-tipped cruise missile known as the Long-Range Standoff Weapon under a three-year Pentagon contract worth about $900 million. The missile, which will be tipped with W80-4 warheads furnished by the National Nuclear Security Administration, will fly aboard the Air Force’s B-52, B-2 Spirit, and B-21 aircraft.
Raytheon raised its guidance for 2018 for sales and earnings, based on better than expected results in the first quarter and a lower tax rate for the year than it had assumed in January. Sales are forecast to be between $26.5 billion and $27 billion, up $100 million from earlier projections. Per share earnings are now expected to be between $9.70 and $9.90, a 15 cent increase from the prior outlook.
