Last Thursday Raytheon (NYSE: RTN) reported earnings for the second quarter of the year. The company surprised investors positively with better than expected profits and revenues. RTN beat analysts' expectations of EPS by $0.43 and revenues by $120.00 million. It was overall an excellent quarter for the company.

Nevertheless, the shares sold off (after a brief run-up in price). This discount left most shareholders baffled as to why that'd happen. As you'd typically expect, a beat both on top and bottom lines should grant a positive reaction from the market.

In this article, I'll provide my analysis of the company's earnings. Furthermore, I'll try to explain why the post-earnings selloff happened, and why it seems unjustified.

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