Stock Update: Raytheon Co (NYSE:RTN) – Cost of Raytheon satellite control system rose 16 pct -Pentagon

[Reuters] – The Pentagon on Thursday said the estimated cost of Raytheon Co’s ground control system for next-generation GPS satellites rose 16.3 percent to $4.2 billion in 2015 – even before a two-year delay decision that will add more cost. The Raytheon GPS Operational Control System (OCX) – dubbed the Air Force’s “No. 1 troubled program” by a top general last month – is now forecast to cost $586.4 million more than the $3.6 billion previously expected. The new estimate is 180 percent over the $1.5 billion value of the contract when it was first awarded to Raytheon in 2010. Read more on this. Raytheon Company (RTN) , valued at $36.76B, opened at $123.46. Looking at the stock, its one day range is $122.80 to $124.33 and has traded between $95.32 and $129.99 over the past 12 months. RTN shares are currently priced at 17.58x this year’s forecasted earnings, which makes them relatively expensive compared to the industry’s 11.98x earnings multiple for the same period. And for income investors, the company pays shareholders $2.68 per share annually in dividends, yielding 2.17%. Consensus earnings for the current quarter by the 18 sell-side analysts covering the stock is an estimate of $1.37 per share, which would be $0.42 worse than the year-ago quarter and a $0.22 sequential decrease. Investors should also note that the full-year EPS estimate of $7.03 is a $0.27 improvement when compared to the previous year’s annual results. The quarterly earnings estimate is based on a consensus revenue forecast of the current quarter of $5.45 Billion. If realized, that would be a 3.02% increase over the year-ago quarter. More recently, Argus upgraded RTN from Hold to Buy (Nov 12, 2015). Previously, JP Morgan upgraded RTN from Neutral to Overweight. Given all the information above, we should disclose to readers that the average price target is $140.19, which is 13.55% above than it opened this morning. See more in (NYSE:RTN) Similar Articles: Company Update (NYSE:RTN): Pentagon to review Raytheon GPS control system again in 3 months Stock Update: Raytheon Co (NYSE:RTN) – Top U.S. arms buyer to meet Raytheon CEO on long-delayed GPS ground system Stock Update: Raytheon Co (NYSE:RTN) – Raytheon unveils next-gen TOW EagleFire launcher