Raytheon Company (RTN) has reported an 18.22 percent rise in profit for the quarter ended Apr. 02, 2017. The company has earned $506 million, or $1.74 a share in the quarter, compared with $428 million, or $1.43 a share for the same period last year.
Revenue during the quarter grew 3.41 percent to $6,000 million from $5,802 million in the previous year period. Gross margin for the quarter expanded 104 basis points over the previous year period to 24.50 percent. Total expenses were 87.65 percent of quarterly revenues, down from 89.43 percent for the same period last year. This has led to an improvement of 178 basis points in operating margin to 12.35 percent.
Operating income for the quarter was $741 million, compared with $613 million in the previous year period.
“Solid revenue growth and margin expansion drove strong earnings per share performance in the first quarter, with all of our businesses meeting or exceeding expectations," said Thomas A. Kennedy, Raytheon Chairman and CEO. “Our focus on global growth and operational excellence, combined with our balanced capital deployment strategy, continues to create value for our customers and shareholders."
Raytheon Co projects revenue to be in the range of $24,900 million to $25,400 million for financial year 2017. For financial year 2017, the company forecasts diluted earnings from continuing operations per share to be in the range of $7.25 to $7.40.
Operating cash flow turns negative Raytheon Company has spent $41 million cash to meet operating activities during the quarter as against cash inflow of $326 million in the last year period. The company has spent $430 million cash to meet investing activities during the quarter as against cash outgo of $91 million in the last year period. It has incurred net capital expenditure of $91 million on net basis during the quarter, down 43.48 percent or $70 million from year ago period.
The company has spent $645 million cash to carry out financing activities during the quarter as against cash outgo of $629 million in the last year period.
Cash and cash equivalents stood at $2,186 million as on Apr. 02, 2017, up 13.03 percent or $252 million from $1,934 million on Apr. 03, 2016.
Working capital increases Raytheon Company has recorded an increase in the working capital over the last year. It stood at $4,208 million as at Apr. 02, 2017, up 16.57 percent or $598 million from $3,610 million on Apr. 03, 2016. Current ratio was at 1.67 as on Apr. 02, 2017, up from 1.63 on Apr. 03, 2016.
Cash conversion cycle (CCC) has decreased to 74 days for the quarter from 78 days for the last year period. Days sales outstanding went up to 95 days for the quarter compared with 93 days for the same period last year.
Days inventory outstanding has decreased to 6 days for the quarter compared with 13 days for the previous year period. At the same time, days payable outstanding went down to 27 days for the quarter from 29 for the same period last year.
Debt remains almost stable
Total debt of Raytheon Company remained almost stable for the quarter at $5,337 million, when compared with the last year period. Short-term debt stood at $251 million as on Apr. 02, 2017. Total debt was 17.87 percent of total assets as on Apr. 02, 2017, compared with 18.50 percent on Apr. 03, 2016. Debt to equity ratio was almost stable at 0.51 as on Apr. 02, 2017, when compared with the last year. Interest coverage ratio improved to 12.78 for the quarter from 10.57 for the same period last year. Disclaimer: Please note that this is an auto-generated article. IRIS does not guarantee the accuracy, adequacy or completeness of any information and is not responsible for any errors or omissions or for the results obtained from the use of such information. IRIS especially states that it has no financial liability whatsoever to any user on account of the use of information provided on its website. For queries contact: [email protected]
