Raytheon Company (RTN) has posted strong third quarter earnings of $499 million or $1.25 per diluted share — better than the Zacks Consensus Estimate of $1.16 per share. Last year, the company had reported a net income of $437 million or $1.01 per share.
 
Operating income in the reported quarter grew by double digits (11%) to $765 million over the year-ago period. The boost came mainly from higher operating income in Technical Services (33%), Network Centric Systems (13%), Space and Airborne Systems (10%) and Integrated Defence Systems (5%). However, Intelligence & Information Systems and Missile Systems registered no growth.
 
On the revenue front, Raytheon grew 6% during the quarter to $6.2 billion over the year-ago period. Top-line growth was fueled by all but the Intelligence & Information Systems segment, owing to lower volumes in the e-Borders program.
 
Raytheon reported total bookings of $5.1 billion for the quarter, compared to $5.8 billion in the third quarter of 2008. The company ended the reported quarter with a backlog of $36.2 billion compared to $38.9 billion at the end of 2008 and $37.0 billion at the end of the third quarter 2008.
 
Raytheon has increased its full year outlook. The company now expects 2009 revenue in the range of $24.7 – $25.0 billion from the earlier guidance range of $24.5 – $25.0 billion. EPS for the year is now forecasted in the range of $4.70 – $4.80 from the earlier guidance range of $4.60 – $4.75. The company also forecasted 2010 EPS to be in the range of $4.75 – $4.90 and revenue in the range of $25.9 – $26.4 billion. We maintain our Outperform recommendation on the shares.
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