Raytheon Co. (RTN) received a contract worth $46.9 million from the U.S. Navy to produce transmitter group, fire-control system and engineering for the shipboard Aegis weapons system.

Raytheon will perform the work in Andover, Massachusetts, and in Sudbury, Massachusetts and complete by February 2014.

Earlier, the U.S. Navy had awarded a contract worth $56 million to supply sonar equipment. Raytheon’s integrated defense unit in Portsmouth, Rhode Island, received the contract from the Defense Logistics Agency to supply the equipment.

Continued contract wins helped the company to end the second-quarter 2010 with a backlog of $35.98 billion, of which $22.46 billion was already funded.

During the second quarter conference call, management provided its revenue outlook for fiscal 2010 in a range of $25.6 billion – $26.1 billion and its earnings outlook of $5.13– $5.28 per share.

The Zacks Consensus Estimate for third-quarter 2010 is earnings of $1.14 per share. For full years 2010 and 2011, the Zacks Consensus Estimates are $4.26 per share and $5.23 per share, respectively.

The company is poised to perform well in the upcoming quarters based on continued contract wins, strong order bookings and backlogs and focus on shareholder value.

On the flip side, the company’s business is substantially dependant on contracts it receives from the U.S. Department of Defense. The prospects of the company is likely to be affected if the $100 billion proposed reduction of U.S. defense expenses is carried out over the next five years.

We maintain our “Neutral” recommendation on Raytheon. The quantitative Zacks #3 Rank (short-term Hold rating) for the company indicates no clear directional pressure on the shares over the near term.

Based in Massachusetts, Raytheon Company is one of the largest aerospace and defense companies in the U.S., with a diversified line of military products, including missiles, radars, sensors, surveillance and reconnaissance equipment, communication and information systems, naval systems, air traffic control systems, and technical services. Its nearest competitors are The Boeing Co. (BA), Lockheed Martin Corp. (LMT) and Northrop Grumman Corp. (NOC).