Earnings Alerts

Raytheon Technologies (RTX) Earnings Exceed Expectations with Strong Fourth Quarter Results and Optimistic 2025 Forecast

By January 28, 2025 No Comments
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  • RTX Corp anticipates adjusted earnings per share (EPS) for 2025 in the range of $6 to $6.15, slightly above the market estimate of $6.08.
  • Expected adjusted sales for 2025 are projected between $83 billion and $84 billion, below the estimated $84.53 billion.
  • The company foresees generating free cash flow between $7 billion and $7.5 billion, aligning closely with the estimated $7.13 billion.
  • For the fourth quarter, RTX reported an adjusted EPS of $1.54, a notable increase from $1.29 year-over-year, surpassing the estimated $1.39.
  • Fourth-quarter adjusted sales amounted to $21.6 billion, marking a 9.1% increase year-over-year and surpassing the anticipated $20.51 billion.
  • Total sales for the fourth quarter reached $21.62 billion, an 8.5% year-over-year increase.
  • Collins Aerospace Systems posted sales of $7.54 billion, a 5.9% increase year-over-year, exceeding the estimate of $7.33 billion.
  • Pratt & Whitney sales soared by 18% year-over-year to $7.57 billion, surpassing the expected $7.02 billion.
  • Raytheon’s sales grew by 3.9% year-over-year, reaching $7.16 billion, above the estimated $6.77 billion.
  • The fourth quarter’s free cash flow was reported at $492 million, a significant decline of 87% year-over-year, below the expected $693 million.
  • CEO/President Chris Calio expressed optimism for 2025, citing a $218 billion backlog and unprecedented demand for RTX’s products and solutions.

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Raytheon Technologies on Smartkarma

Raytheon Technologies Corporation (RTX) has garnered positive analyst coverage on Smartkarma, with insights provided by Baptista Research. In a report titled “RTX Corporation: What Is The Expected Revenue Impact Of Global Defense Spending and Military Modernization? – Major Drivers,” Baptista Research highlights RTX’s solid performance in the third quarter of 2024. The company demonstrated continued strength across various segments, including robust demand in commercial airlines and defense sectors. Adjusted sales saw an 8% increase, showcasing strong organic growth, while segment margins expanded by 100 basis points. Baptista Research also delves into factors influencing the company’s future price and conducts an independent valuation using a Discounted Cash Flow (DCF) methodology.

Another report by Baptista Research, titled “RTX Corporation: Expanding Market Presence in Defense and Commercial Aerospace! – Major Drivers,” focuses on RTX’s impressive performance in the second quarter of 2024. The company exhibited double-digit top-line growth and expanded margins, indicating significant progress in operational and financial health. Despite challenges, RTX’s strategic execution and commercial advancements have bolstered its market presence. However, concerns arise from financial charges due to legal settlements and contract adjustments. These reports provide valuable insights for investors following Raytheon Technologies Corporation on Smartkarma.


A look at Raytheon Technologies Smart Scores

FactorScoreMagnitude
Value3
Dividend3
Growth4
Resilience3
Momentum4
OVERALL SMART SCORE3.4

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, appears to have a positive long-term outlook based on its Smartkarma Smart Scores. With above-average scores in growth and momentum, the company is positioned well for future expansion and market performance. The company’s focus on innovative solutions, including aero structures, avionics, and aircraft engines, contributes to its growth potential. Additionally, the company’s strong momentum score reflects current market sentiment and investor interest, indicating positive trends for Raytheon Technologies.

While maintaining solid scores across various factors, such as value, dividend, and resilience, Raytheon Technologies demonstrates a balanced approach to its operations. The company’s resilience score signifies its ability to withstand economic challenges and market fluctuations, providing stability for investors. Overall, the combination of these Smart Scores suggests a promising outlook for Raytheon Technologies as it continues to innovate and deliver cutting-edge solutions in the aircraft manufacturing sector.

**Summary:** Raytheon Technologies Corporation operates as an aircraft manufacturing company, placing emphasis on technology offerings and engineering teams to provide innovative solutions across various products and systems within the aerospace industry.


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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