"Good performance" on the defense side countered troubles on the commercial aerospace side, the company said. The entire commercial aerospace industry has sunk during the coronavirus pandemic, which has kept would-be travelers at home.
Raytheon’s revenue climbed 24% in the second quarter to $14.06 billion from $11.33 billion a year earlier. Analysts surveyed by FactSet were expecting revenue of $13.46 billion for the latest quarter.
The company swung to a net loss of $3.84 billion, or $2.55 a share, in the latest quarter from profit of $1.90 billion, or $2.20 a share, last year.
Raytheon shares recently traded at $60.14, down 1.56%. The stock has slumped 36% year to date, compared to a virtually unchanged performance for the S&P 500 index during the period.
Adjusted earnings were 40 cents a share, far above analysts’ prediction of 13 cents.
Raytheon experienced the same divergence in the first quarter, with the defense business thriving and the commercial aerospace segment suffering.
That led Morningstar analyst Burkett Huey to reduce his fair value estimate for Raytheon shares by 3.5% to $79 per share to account for the aerospace trouble.
“We think the Covid-19 pandemic supports management’s case for the merger [with United Technologies consummated in April,] as the balanced portfolio of commercial aerospace and defense is performing substantially better than we expect a commercial aerospace pure-play would” Huey wrote in a commentary.
“The combined entity is fundamentally unique,” the analyst added.