Defence contractor Raytheon Co reported a quarterly net profit on Thursday, reversing a year-earlier loss, on higher US military spending and improvements at its business jet unit.
The Waltham, Massachusetts-based developer of military electronics, precision strike and missile systems said it expects the strong trends in its business to continue.
"Raytheon is several cents above consensus (estimates for the third quarter) - it's another defence company that's been doing better than consensus," said Paul Nisbet, an analyst with JSA Research Inc.
"Orders have really been flowing and we're starting to see those orders come down to the bottom line."
Third-quarter net income was $152 million, or 34 cents per diluted share, compared with a loss of $35 million, or 8 cents per share, a year earlier.
Results included a loss of 7 cents per share from discontinued operations, compared with a one-time loss of 13 cents a share a year earlier.
Sales rose 13 percent to $4.94 billion, matching the average forecast among analysts polled by Reuters Estimates.
Income from continuing operations jumped to $186 million, or 41 cents per share, from $21 million, or 5 cents per share, a year earlier.
Analysts had expected 37 cents per share, according to Reuters Estimates.
Raytheon said it expects full-year earnings from continuing operations of 87 cents to 92 cents a share, up from prior guidance of 79 cents to 89 cents. It cited improvement at its business jet unit and continuing strong military demand for weapons and security.
It said earnings for 2005 are expected to be between $1.80 and $1.90 per share on sales of $21.5 billion to $22 billion, with free cash flow of $1.1 billion to $1.3 billion.
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