WASHINGTON – Raytheon Co., the world’s largest missile maker, reported a 6.3 percent decline in first-quarter sales, reflecting a slowdown in the federal marketplace. The shares fell the most since November 2012.
Raytheon was the last of the top five U.S. government contractors to release quarterly earnings this week, and it had the biggest drop in revenue. Sales fell to $5.51 billion, with decreases across all four divisions, the government’s fourth-biggest contractor said in a statement today.
Net income from continuing operations rose 20 percent to $589 million, or $1.87 a share, in the quarter, which included $80 million for a one-time tax benefit. That compared with $490 million, or $1.49 a share, a year earlier. The average estimate of 20 analysts surveyed by Bloomberg was $1.77 a share.
The company, based in Waltham, Mass., reaffirmed its profit forecast in January of $6.74 to $6.89 a share on sales of $22.5 billion to $23 billion.
Raytheon fell 5 percent to $95.20 at 9:42 a.m. in New York, the biggest decline since Nov. 7, 2012. It had risen 75 percent in trading in the past 12 months, compared with a 19 percent gain in the Standard & Poor’s 500 Index during that time.
Pentagon spending is slowing as the U.S. withdraws combat troops from Afghanistan and the military absorbs automatic federal budget cuts.
Raytheon is seeking to boost international and cybersecurity sales, Chief Financial Officer Dave Wajsgras said in an interview today. Overseas business accounted for 39 percent of first-quarter bookings, which included a $655 million contract to provide fire units for a Patriot air- and missile-defense system in Kuwait, he said.