- RTX Corp has revised its full-year adjusted EPS (Earnings Per Share) forecast to between $5.80 and $5.95, down from the previous range of $6.00 to $6.15. Analysts had estimated it at $5.98.
- Adjusted sales are now expected to be between $84.75 billion and $85.5 billion, compared to the earlier forecast of $83 billion to $84 billion. The market estimate was $84.35 billion.
- The company maintains its forecast for free cash flow at $7 billion to $7.5 billion, ahead of the $6.9 billion estimate.
- In the second quarter, the adjusted EPS was $1.56, an increase from $1.41 year-over-year, surpassing the $1.45 estimate.
- Adjusted sales for the second quarter reached $21.58 billion, growing 9% year-over-year, exceeding the estimated $20.64 billion.
- Revenue from Collins Aerospace Systems rose to $7.62 billion, up 8.9% year-over-year, beating the estimate of $7.34 billion.
- Pratt & Whitney achieved sales of $7.63 billion, a 12% increase year-over-year, surpassing the $7.19 billion estimate.
- Raytheon generated $7.00 billion in sales, a 7.5% rise year-over-year, which exceeded the expected $6.73 billion.
- The company reported a negative free cash flow of $72 million, contrasting with a positive $2.20 billion in the previous year and falling short of the positive $564.6 million estimate.
- The business outlook reflects strong operational performance in the first half of the year, with impacts from tariffs and new tax legislation.
- RTX highlighted significant progress, including 16% growth in commercial aftermarket sales and a 15% increase in backlog to $236 billion.
- Key achievements included major contract wins for geared turbofan engines and integrated air and missile defense systems, according to Chairman and CEO Chris Calio.
Raytheon Technologies on Smartkarma
On Smartkarma, independent analysts such as Baptista Research have been closely monitoring Raytheon Technologies. Baptista Research recently published a report titled “RTX Technologies’ Backlog Boom vs. Tariff Trouble: What Lies Ahead For The Defense Major?” The analysis highlighted Raytheon Technologies Corporation’s strong first-quarter performance, including 8% organic sales growth, segment margin expansion, and a significant improvement in free cash flow. Commercial aftermarket sales saw a notable increase of 21%, while defense sales grew by 4%, contributing to a robust segment operating profit growth of 18%. The overall sentiment lean in this report was bullish, indicating optimism about the company’s future trajectory.
In another insightful report by Baptista Research titled “RTX Corporation: Will Its Next-Generation Engine Programs Affirm Leadership Position In The Defense & Aerospace Industry? – Major Drivers,” the analyst delved into Raytheon Technologies Corporation’s financial performance in the fourth quarter of 2024. The company reported impressive adjusted sales of $80.8 billion, with an 11% organic increase driven by strong performances in commercial OE, commercial aftermarket, and defense sales. Adjusted earnings per share grew by 13% to $5.73, and the company generated a substantial free cash flow of $4.5 billion. The sentiment lean in this report was also bullish, emphasizing the potential for Raytheon Technologies to solidify its leadership position in the industry through its next-generation engine programs.
A look at Raytheon Technologies Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 3 | |
| Growth | 4 | |
| Resilience | 3 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Raytheon Technologies Corporation, an aircraft manufacturing company, shows a promising long-term outlook based on the Smartkarma Smart Scores. With a solid rating of 4 for Growth and Momentum, it indicates positive potential for future expansion and upward stock movement. The company’s focus on innovation and engineering solutions bodes well for its growth trajectory, bolstered by strong momentum in the market. While Value, Dividend, and Resilience scores remain steady at 3, the higher ratings in Growth and Momentum highlight a bright outlook for Raytheon Technologies in the long run.
Raytheon Technologies Corporation, known for its cutting-edge technology offerings and diverse product range, continues to demonstrate resilience in the industry. The company’s emphasis on aero structures, avionics, mechanical systems, and other innovative solutions positions it as a key player in the aircraft manufacturing sector. With a balance of growth opportunities and market momentum, Raytheon Technologies appears well-equipped to navigate future challenges and capitalize on emerging trends for sustained success in the long term.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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