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RTX Q1 Earnings Surpass Estimates by 9%, Sales Increase Y/Y
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RTX Corporation’s (RTX - Free Report) first-quarter 2024 adjusted earnings per share (EPS) of $1.34 beat the Zacks Consensus Estimate of $1.23 by 8.9%. The bottom line also improved 9.8% from the year-ago quarter’s level of $1.22.
Including one-time items, the company reported GAAP earnings of $1.28 per share compared with 97 cents in the prior-year quarter.
Operational Performance
RTX’s first-quarter net sales totaled $19,305 million, which surpassed the Zacks Consensus Estimate of $18,412.6 million by 4.8%. The top line also improved 12% from $17,214 million recorded in the first quarter of 2023.
Total costs and expenses increased 14% year over year to $17,807 million. The company generated an operating profit of $1,870 million compared with $1,687 million in the prior-year quarter.
RTX posted an adjusted operating profit of $2,292 million, up 6.5% from the year-ago quarter’s reported figure of $2,153 million.
Segmental Performance
Collins Aerospace: Sales in this segment totaled $6,673 million, up 9% year over year. This improvement can be attributed to higher commercial aftermarket and commercial OEM sales, backed by strong demand across commercial aerospace end markets. Increased defense sales driven by higher volume also benefited this unit’s sales.
The segment’s adjusted operating profit totaled $1,048 million compared with $903 million in the year-ago quarter.
Pratt & Whitney: This segment’s sales totaled $6,456 million, up 23% from the year-ago quarter’s level. The improvement was due to growth in the commercial aftermarket and commercial OEM businesses, driven by higher GTF OE volume and favorable mix, and higher aftermarket volume. Increased military sales, driven by higher sustainment volume across multiple platforms, also contributed to this unit’s sales growth.
Adjusted operating profit amounted to $430 million compared with the year-ago quarter’s level of $434 million.
Raytheon: This segment recorded first-quarter sales of $6,659 million, up 6% year over year, driven by higher sales volume from land and air defense systems, including Global Patriot, counter-UAS systems and NASAMS, and advanced technology programs.
The segment’s adjusted operating profit amounted to $630 million, up 8% from $584 million recorded in the corresponding period of 2023.
Financial Update
RTX had cash and cash equivalents of $5,607 million as of Mar 31, 2024, compared with $6,587 million as of Dec 31, 2023.
Long-term debt totaled $42,334 million as of Mar 31, 2024, up from $42,355 million as of Dec 31, 2023.
Net cash flow from operating activities was $342 million as of Mar 31, 2024, against cash outflow from operating activities of $863 million at the end of first-quarter 2023.
Free cash outflow totaled $125 million at the end of first-quarter 2024 compared with $1,383 million at the end of first-quarter 2023.
Guidance
RTX reiterated its financial guidance for 2024.
The company still projects adjusted EPS in the band of $5.25-$5.40. The Zacks Consensus Estimate for RTX’s 2024 EPS is pegged at $5.39, higher than the mid-point of the company’s guided range.
RTX continues to expect to generate sales in the band of $78-$79 billion in 2024. The Zacks Consensus Estimate for sales is pegged at $78.63 billion, which lies above the mid-point of the company’s guidance.
The company still expects free cash flow of $5.7 billion for 2024.
Textron (TXT - Free Report) is scheduled to declare first-quarter 2024 results on Apr 25, before market open. The Zacks Consensus Estimate for first-quarter revenues is pegged at $3.37 billion, indicating a 11.4% increase from the year-ago quarter’s reported figure.
The consensus mark for Textron’s earnings is pinned at $1.28 per share, indicating a 21.9% improvement year over year.
The Boeing Company (BA - Free Report) is set to release first-quarter 2024 results on Apr 24, before the opening bell. The Zacks Consensus Estimate for first-quarter revenues is pegged at $17.69 billion, indicating a 1.3% decline from the year-ago quarter’s reported figure.
The bottom-line estimate for BA is pegged at a loss of $1.43 per share, indicating a deterioration from the year-ago quarter’s reported loss of $1.27.
Northrop Grumman (NOC - Free Report) is scheduled to report first-quarter 2024 results on Apr 25, before market open. The Zacks Consensus Estimate for first-quarter revenues is pegged at $9.78 billion, indicating a 5.2% increase from the year-ago quarter’s reported figure.
The consensus mark for Northrop’s earnings is pinned at $5.83 per share, indicating a 6% improvement year over year.
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RTX Q1 Earnings Surpass Estimates by 9%, Sales Increase Y/Y
RTX Corporation’s (RTX - Free Report) first-quarter 2024 adjusted earnings per share (EPS) of $1.34 beat the Zacks Consensus Estimate of $1.23 by 8.9%. The bottom line also improved 9.8% from the year-ago quarter’s level of $1.22.
Including one-time items, the company reported GAAP earnings of $1.28 per share compared with 97 cents in the prior-year quarter.
Operational Performance
RTX’s first-quarter net sales totaled $19,305 million, which surpassed the Zacks Consensus Estimate of $18,412.6 million by 4.8%. The top line also improved 12% from $17,214 million recorded in the first quarter of 2023.
RTX Corporation Price, Consensus and EPS Surprise
RTX Corporation price-consensus-eps-surprise-chart | RTX Corporation Quote
Total costs and expenses increased 14% year over year to $17,807 million. The company generated an operating profit of $1,870 million compared with $1,687 million in the prior-year quarter.
RTX posted an adjusted operating profit of $2,292 million, up 6.5% from the year-ago quarter’s reported figure of $2,153 million.
Segmental Performance
Collins Aerospace: Sales in this segment totaled $6,673 million, up 9% year over year. This improvement can be attributed to higher commercial aftermarket and commercial OEM sales, backed by strong demand across commercial aerospace end markets. Increased defense sales driven by higher volume also benefited this unit’s sales.
The segment’s adjusted operating profit totaled $1,048 million compared with $903 million in the year-ago quarter.
Pratt & Whitney: This segment’s sales totaled $6,456 million, up 23% from the year-ago quarter’s level. The improvement was due to growth in the commercial aftermarket and commercial OEM businesses, driven by higher GTF OE volume and favorable mix, and higher aftermarket volume. Increased military sales, driven by higher sustainment volume across multiple platforms, also contributed to this unit’s sales growth.
Adjusted operating profit amounted to $430 million compared with the year-ago quarter’s level of $434 million.
Raytheon: This segment recorded first-quarter sales of $6,659 million, up 6% year over year, driven by higher sales volume from land and air defense systems, including Global Patriot, counter-UAS systems and NASAMS, and advanced technology programs.
The segment’s adjusted operating profit amounted to $630 million, up 8% from $584 million recorded in the corresponding period of 2023.
Financial Update
RTX had cash and cash equivalents of $5,607 million as of Mar 31, 2024, compared with $6,587 million as of Dec 31, 2023.
Long-term debt totaled $42,334 million as of Mar 31, 2024, up from $42,355 million as of Dec 31, 2023.
Net cash flow from operating activities was $342 million as of Mar 31, 2024, against cash outflow from operating activities of $863 million at the end of first-quarter 2023.
Free cash outflow totaled $125 million at the end of first-quarter 2024 compared with $1,383 million at the end of first-quarter 2023.
Guidance
RTX reiterated its financial guidance for 2024.
The company still projects adjusted EPS in the band of $5.25-$5.40. The Zacks Consensus Estimate for RTX’s 2024 EPS is pegged at $5.39, higher than the mid-point of the company’s guided range.
RTX continues to expect to generate sales in the band of $78-$79 billion in 2024. The Zacks Consensus Estimate for sales is pegged at $78.63 billion, which lies above the mid-point of the company’s guidance.
The company still expects free cash flow of $5.7 billion for 2024.
Zacks Rank
RTX currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Q1 Defense Earnings
Textron (TXT - Free Report) is scheduled to declare first-quarter 2024 results on Apr 25, before market open. The Zacks Consensus Estimate for first-quarter revenues is pegged at $3.37 billion, indicating a 11.4% increase from the year-ago quarter’s reported figure.
The consensus mark for Textron’s earnings is pinned at $1.28 per share, indicating a 21.9% improvement year over year.
The Boeing Company (BA - Free Report) is set to release first-quarter 2024 results on Apr 24, before the opening bell. The Zacks Consensus Estimate for first-quarter revenues is pegged at $17.69 billion, indicating a 1.3% decline from the year-ago quarter’s reported figure.
The bottom-line estimate for BA is pegged at a loss of $1.43 per share, indicating a deterioration from the year-ago quarter’s reported loss of $1.27.
Northrop Grumman (NOC - Free Report) is scheduled to report first-quarter 2024 results on Apr 25, before market open. The Zacks Consensus Estimate for first-quarter revenues is pegged at $9.78 billion, indicating a 5.2% increase from the year-ago quarter’s reported figure.
The consensus mark for Northrop’s earnings is pinned at $5.83 per share, indicating a 6% improvement year over year.