recommended reading

Defense contractors beat Wall Street expectations despite budget pressures

Lockheed Martin recorded profits above expectations.

Lockheed Martin recorded profits above expectations. // John Amis/AP file photo

Weapons maker Raytheon reported higher-than-expected earnings on Thursday although its sales cooled in the second quarter. The maker of Patriot missiles was the last of the big U.S. military contractors to report earnings this week, many of which beat analyst expectations amid Pentagon budget pressures.

The company’s net earnings for continuing operations rose 10 percent to $470 million in the second quarter, according to a statement.

Revenue fell 3.4 percent to $5.99 billion, dragged down by weaker performance in network and missile systems. Space and airborne systems offered a brighter spark, bringing in sales of $1.38 billion, up from $1.34 billion a year ago.

Raytheon Chief Financial Officer Dave Wajsgras said the company booked nearly $1 billion in new classified U.S. government orders in the first half of the year and expected "significant" international bookings later this year, Reuters reported.

Unlike other defense contractors such as Lockheed Martin and Northrop Grumman, whose executives have been vocal about how budget cuts would threaten profits, Raytheon’s executives maintained that the company is flexible enough to weather sequestration, Bloomberg reported.

Raytheon expects orders for missile defense systems, precision missiles, command control and communications systems and air-traffic control radar from countries in the Middle East, CEO Bill Swanson said on the company’s earnings call.

Lockheed Martin, which builds the F-35 and F-16 fighter jets, also exceeded Wall Street’s expectations on Tuesday. The company’s quarterly earnings from continuing operations rose 4.4 percent to $781 million, and sales rose 3.3 percent to $11.9 billion in the second quarter.

Northrop Grumman beat Street expectations even though the Global Hawk unmanned aircraft maker saw earnings fall 7.7 percent to $480 million, and sales drop 4.4 percent to $6.27 billion.

Threatwatch Alert

Thousands of cyber attacks occur each day

See the latest threats


Close [ x ] More from Nextgov

Thank you for subscribing to newsletters from
We think these reports might interest you:

  • It’s Time for the Federal Government to Embrace Wireless and Mobility

    The United States has turned a corner on the adoption of mobile phones, tablets and other smart devices, outpacing traditional desktop and laptop sales by a wide margin. This issue brief discusses the state of wireless and mobility in federal government and outlines why now is the time to embrace these technologies in government.

  • Featured Content from RSA Conference: Dissed by NIST

    Learn more about the latest draft of the U.S. National Institute of Standards and Technology guidance document on authentication and lifecycle management.

  • A New Security Architecture for Federal Networks

    Federal government networks are under constant attack, and the number of those attacks is increasing. This issue brief discusses today's threats and a new model for the future.

  • Going Agile:Revolutionizing Federal Digital Services Delivery

    Here’s one indication that times have changed: Harriet Tubman is going to be the next face of the twenty dollar bill. Another sign of change? The way in which the federal government arrived at that decision.

  • Software-Defined Networking

    So many demands are being placed on federal information technology networks, which must handle vast amounts of data, accommodate voice and video, and cope with a multitude of highly connected devices while keeping government information secure from cyber threats. This issue brief discusses the state of SDN in the federal government and the path forward.

  • The New IP: Moving Government Agencies Toward the Network of The Future

    Federal IT managers are looking to modernize legacy network infrastructures that are taxed by growing demands from mobile devices, video, vast amounts of data, and more. This issue brief discusses the federal government network landscape, as well as market, financial force drivers for network modernization.


When you download a report, your information may be shared with the underwriters of that document.