April 25, 2019 / 10:56 AM / a month ago

Raytheon results beat on higher weapons sales

April 25 (Reuters) - Tomahawk missile maker Raytheon Co on Thursday reported a better-than-expected first-quarter profit, driven by higher demand for its weapons from the United States and its allies.

Waltham, Massachusetts-based Raytheon and other U.S. weapons makers are expected to benefit from higher U.S. defense spending under President Donald Trump as well as strong global demand for advanced weapons and munitions.

Sales in the Raytheon's intelligence, information and services unit, it's second biggest by revenue, increased 12.3 percent to $1.78 billion in the quarter ended March 31, helped by higher revenue from 'classified programs'.

Operating margin in the intelligence, information and services business, which provides cybersecurity support to the U.S Department of Homeland Security, surged to 10.5 percent from 7.4 percent.

The company reaffirmed its 2019 net sales in a range of $28.6 billion to $29.1 billion and earnings from continuing operations between $11.40 per share and $11.60 per share.

Raytheon also reiterated its full-year outlook for operating cash flow from continuing operations between $3.9 billion and $4.1 billion.

Income from continuing operations jumped to $775 million, or $2.77 per share, in the quarter, from $624 million, or $2.20 per share, a year earlier.

Revenue in the quarter rose 7.4 percent to $6.73 billion.

Analysts on average had expected first-quarter earnings of $2.47 per share and revenue of $6.62 billion, according to IBES data from Refinitiv. (Reporting by Mike Stone in Washington Ankit Ajmera in Bengaluru; Editing by James Emmanuel)

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