Upcoming AWS Coverage on TransDigm Group Post-Earnings Results

LONDON, UK / ACCESSWIRE / February 8, 2017 / Active Wall St. announces its post-earnings coverage on Raytheon Co. (NYSE: RTN). The Company posted its fourth quarter and fiscal year 2016 results on January 26, 2017. The Defense contractor posted record booking for FY16, while its backlog increased 6%. Register with us now for your free membership at:

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One of Raytheon's competitors within the Aerospace/Defense Products & Services space, TransDigm Group Inc. (NYSE: TDG), announced on January 27, 2017, that it will report its Q1 FY17 earnings before the market opens on Tuesday, February 07, 2017. AWS will be initiating a research report on TransDigm Group in the coming days.

Today, AWS is promoting its earnings coverage on RTN; touching on TDG. Get our free coverage by signing up to:

http://www.activewallst.com/registration-3/?symbol=RTN

http://www.activewallst.com/registration-3/?symbol=TDG

Earnings Reviewed

For the three months ended on December 31, 2016, Raytheon reported net sales of $6.24 billion compared to $6.33 billion in Q4 2015. The Company's reported numbers were below analysts' forecasts of $6.51 billion. The Company's net sales in FY16 were $24.07 billion, up 3.5% compared to $23.25 billion in FY15.

For Q4 2016, Raytheon reported bookings of $7.6 billion, resulting in a book-to-bill ratio of 1.21. The Company's bookings were $7.9 billion in Q4 2015. Raytheon's FY16 bookings were a record $27.8 billion, resulting in a book-to-bill ratio of 1.16. FY15 bookings were $25.2 billion. Raytheon's Backlog at the end of 2016 was $36.9 billion, an increase of approximately $2.2 billion or 6% at the end of 2015.

Raytheon's Q4 2016 EPS from continuing operations was $1.84 compared to $1.85 in Q4 2015. The Company made a pretax discretionary pension plan contribution in Q4 2016 and Q4 2015, which had an unfavorable tax-related EPS impact of $0.04 and $0.02, respectively. On an adjusted basis, the Company posted earnings of $1.88 per share, outperforming Wall Street's estimates of $1.86 per share. The Company's FY16 EPS from continuing operations was $7.44 compared to $6.75 for FY15.

Segment Results

For Q4 2016, Raytheon's Integrated Defense Systems (IDS) segment reported net sales of $1.41 billion compared to $1.56 billion in Q4 2015. For FY16, IDS had net sales of $5.48 billion compared to $5.85 million in FY15. The change in net sales for both the quarter and the full-year was primarily driven by lower net sales on an international communications program and on the Air Warfare Destroyer (AWD) program. IDS recorded $219 million of operating income in Q4 2016 compared to $281 million in Q4 2015. IDS recorded $950 million of operating income in 2016 compared to $864 million in 2015. During the reported quarter, IDS booked approximately $1.0 billion to provide advanced Patriot air and missile defense capabilities for multiple international customers.

During Q4 2016, Raytheon's Intelligence, Information and Services (IIS) generated net sales of $1.52 billion compared to $1.54 billion in Q4 2015. IIS reported FY16 net sales of $6.19 billion compared to $6.11 billion in FY15. The change in net sales for the full-year was primarily driven by higher net sales on cybersecurity and special mission programs.

IIS recorded $121 million of operating income in Q4 2016 compared to $111 million in Q4 2015. The segment recorded $467 million of operating income in FY16 compared to $646 million in FY15. During Q4 2016, IIS booked $90 million on domestic and foreign training programs in support of Warfighter FOCUS activities. IIS also booked $448 million on a number of classified contracts.

Raytheon's Missile Systems (MS) reported net sales of $1.90 billion in Q4 2016 compared to $1.88 billion in Q4 2015. MS had FY16 net sales of $7.07 billion compared to $6.56 billion in FY15. MS recorded $260 million of operating income in Q4 2016 compared to $258 million in the Q4 2015. MS recorded $916 million of operating income in FY16 compared to $868 million in FY15. During the reported quarter, MS booked $362 million for Paveway?, $309 million for Tomahawk, and $259 million for the Rolling Airframe Missile (RAM?) program.

For Q4 2016, Raytheon's Space and Airborne Systems (SAS) reported net sales of $1.61 billion compared to $1.58 billion in Q4 2015. The increase in net sales for the quarter was primarily driven by higher net sales on an electronic warfare systems program and an international classified program. SAS's FY16 net sales totaled $6.20 billion compared to $5.80 billion in FY15. SAS recorded $231 million of operating income in Q4 2016 compared to $239 million in Q4 2015. During the reported quarter, SAS booked $610 million for the production of Active Electronically Scanned Array (AESA) radars. SAS also booked $467 million on a number of classified contracts.

Raytheon's Forcepoint segment had Q4 2016 net sales of $143 million, up 8% compared to $133 million in Q4 2015. The increase in net sales for the quarter was primarily driven by the acquisition of Stonesoft in Q1 2016. Forcepoint recorded $11 million of operating income in both Q4 2016 and Q4 2015. Forcepoint's FY16 net sales were $566 million compared to $328 million in FY15. Forcepoint recorded $51 million of operating income in FY16 compared to $30 million in FY15.

Cash Flow & Balance Sheet

Raytheon's operating cash flow from continuing operations for Q4 2016 was $1.1 billion compared to $0.8 billion for Q4 2015. The Company's operating cash flow from continuing operations included a $500 million pre-tax discretionary cash contribution to the Company's pension plans compared to $200 million in Q4 2015. For FY16 and FY15, the Company generated $2.9 billion and $2.3 billion of operating cash flow from continuing operations, respectively. In Q4 2016, Raytheon repurchased 0.7 million shares of common stock for $100 million. For FY16, the Company repurchased 6.9 million shares of common stock for $900 million.

Stock Performance

On Tuesday, February 07, 2017, the stock closed the trading session at $148.12, rising slightly by 0.39% from its previous closing price of $147.55. A total volume of 1.63 million shares have exchanged hands. Raytheon's stock price advanced 11.97% in the last three months, 6.95% in the past six months, and 20.30% in the previous twelve months. Furthermore, since the start of the year, shares of the Company have gained 4.31%. The stock is trading at a PE ratio of 19.89 and has a dividend yield of 1.98%.

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SOURCE: Active Wall Street