UPDATE 1-Raytheon profit rises, ups year forecast

* EPS $1.01/shr beats consensus 97 cents/shr

* Announces $2 bln share buyback

* Raises full-year 2008 outlook, still below Street

NEW YORK, Oct 23 (Reuters) - Raytheon Co (RTN.N) reported higher third-quarter profit, helped by strong sales of its missiles and military gear.

The company, which makes Patriot missile systems and a range of military and civilian electronics, reported net earnings of $427 million, or $1.01 per share, compared with $299 million, or 68 cents per share, a year earlier.

Wall Street was expecting 97 cents per share, on average, according to Reuters Estimates.

Sales rose 12 percent to $5.9 billion, above analysts' average estimate of $5.7 billion. It increased revenue in each of its units: integrated defense, intelligence, missiles, networks, space and technical systems.

The company also announced a new $2 billion stock buyback plan and raised its full-year outlook.

It expects 2008 profit of $3.95 to $4.00 per share, up from its last estimate of $3.80 to $3.95. That is still below analysts' average estimate of $4.01 per share. (Reporting by Bill Rigby; Editing by Derek Caney)