Defense contractor Raytheon Company (RTN) announced that its Raytheon Technical Services Company unit received a contract worth $65 million for the U.S. Air Force Cobra Dane radar systems.
The unit has already started work on the contract from April 1, 2011, and the service contract can continue till December 31, 2015 if all options are exercised by the parties. As per the contract, Raytheon’s unit will look after the maintenance, radar sustainment and systems engineering, in addition to providing integrated logistic support.
The Cobra Dane system, commissioned in 1977, provides support to the Air Force and Missile Defense Agency. The AN/FPS-108 Cobra Dane was originally built by Raytheon and modernized by Raytheon’s Integrated Defense Systems unit.
Recently, the Raytheon Technical Services Company unit entered into an alliance with General Dynamics Corporation (GD), ASRC Aerospace Corporation, ARES Corporation, Schafer Corporation and World Technical Services Incorporated (WTSI) to pursue the U.S. Air Force Range Integration contract.
Raytheon had reported sales of $25.2 billion in fiscal 2010, and the company expects 2011 revenue between $25.5 billion and $26.3 billion, surpassing 2010 levels. The company expects adjusted earnings per share for 2011 to be $5.50 to $5.65. The Zacks Consensus Estimate for 2011 is presently $5.00 per share.
Raytheon currently retains a Zacks #2 Rank (short-term 'Buy' rating). We presently maintain a Neutral rating on the stock over the long term. Major peers of the company include The Boeing Company (BA), Lockheed Martin Corporation (LMT) and Northrop Grumman Corporation (NOC).
Based in Waltham, Massachusetts, Raytheon Company, along with its subsidiaries, provides electronics, mission systems integration, and other capabilities in the areas of sensing, effects, and command, control, communications, and intelligence systems, as well as mission support services to its global customers.
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