The world’s leading weapon maker Raytheon reports that it exceeded the analysts’ third-quarter earnings expectations even with the bigger-than-forecasted sales drop.
With the report of higher earnings also came the company’s announcement of its acquisition of a privately held company is for $400 million which is already in progress. It was mentioned by Raytheon that it will provide more details next month after the deal is closed.
According to Financial Officer Dave Wasjgras of Raytheon, the company is confident on how 2014 will play out with expectations that the 4th quarter sales will increase given the Qatar deal for Patriot missile defense system that’s already final.
Raytheon said that the company’s bookings surpassed sales, which is an implication that there will be a positive route over the next few years. The income from continuing operations of Raytheon increased 5.7% or $515 million which is equivalent to $1.65 per share as compared to last year’s income of $487 million or $1.51 per share.
After having adjusted the earnings for pension account rules changes, the income dropped from $1.60 per share to only $1.57.
Currently, the company is expected that its earnings for 2014 will range from $5.91 to $6.01 which is already adjusted for pension accounting which is a bit different from what it previously forecasted which ranged between $5.76 and $5.91.