Raytheon CEO says the company will 'load up' on share buybacks in 2021 after strong 4th-quarter earnings
Raytheon TechnologiesCEO Greg Hayestold CNBC Tuesday he expects to "load up" on share buybacks in 2021. Raytheonoutperformed analyst estimates in the fourth quarter, especially in terms of cash flow.
- The aerospace defense conglomerate posted $2.3 billion in pro forma free cash flow in 2020.
"We closed the year on a strong note with fourth-quarter sales, EPS, and free cash flow exceeding our expectations, as we delivered on our customer commitments and drove strong execution against our cost and cash actions," said Greg Hayes. "As a result, we delivered $2.3 billion in pro forma free cash flow for the year, which includes $800 million of discretionary pension contributions."Read more: MORGAN STANLEY: Buy these 9 sports-betting stocks ahead of the industry's expected legalization in 12 states this year and its growth to $10 billion in 2025
Raytheon also posted revenues of $16.42 billion which narrowly surpassed analyst estimates for the fourth-quarter, but didn't come close to the $19.55 billion in revenue the aerospace defense conglomerate earned in 2019.
Despite the near-term revenue shortfall, Raytheon has made some strong moves of late to increase revenues going forward, including its acquisition of Blue Canyon Technologies. Blue Canyon is a satellite company that gives Raytheon the ability to provide "a complete solution for customers for low-Earth orbit satellites," according to CEO Greg Hayes.Hayes expects the space division of the company to see strong growth over the next "five to 10 years."
Raytheon boasts 13 "buy" ratings, four "neutral" ratings, and zero "sell" ratings from analysts.
Shares traded at $68.43 as of 1:25 pm EST on Tuesday, giving the company a market cap of just under $100 billion.
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