Raytheon 1Q earnings climb on broad sales growth

Raytheon Co., the Waltham defense contractor, reported that its first-quarter earnings rose 14 percent as sales grew across its businesses making missiles, radars and defense electronics and the defense contractor raised its full-year guidance.

Raytheon reported net earnings of $452 million, or $1.12 per share, up from $398 million, or 92 cents per share, in the year-ago period. On a continuing operations basis, Raytheon earned $1.11 per share in the first quarter.

Revenue grew 10 percent to $5.88 billion. Sales were up in each of Raytheon's six divisions, which make equipment that includes missile defense systems, secret intelligence gear and sensors for spacecraft.

Analysts expected Raytheon to earn $1.01 per share from continuing operations on revenue of $5.6 billion.

Raytheon also raised its outlook for the year by 10 cents per share to a range of $4.55 to $4.70 per share. Analysts expect $4.62 in 2009 earnings per share.

The company's stock rose $4.20, or 10.2 percent, to $45.50 in premarket activity. The stock has ranged from $33.20 to $66.50 over the past year.

Chief financial officer David Wajsgras said Raytheon boosted its forecast because of the stronger across-the-board first quarter.

Big Pentagon suppliers like Raytheon are still sorting out the long term effects of Defense Secretary Robert Gates' 2010 fiscal year budget, which would make some major changes in the way the military buys weapons. Some big equipment like the F-22 fighter jet and a Navy warship would be curtailed, while spending would be boosted on tools used to fight insurgents in places such as Afghanistan.

Wajsgras said Raytheon is still assessing the impact of the proposal, which must be approved by Congress. But he said the company could benefit from the new focus on areas such as some missile defense systems and intelligence work.

"I wouldn't draw any conclusions, but we are encouraged," he said.

Raytheon saw the fastest quarterly sales growth in its unit that does training for the U.S. military and its classified work for intelligence agencies. (AP. File photo of a Raytheon TOW missile being fired: Company handout via Bloomberg News.)