Raytheon Technologies Corporation (RTX - Free Report) third-quarter 2020 adjusted earnings per share (EPS) of 58 cents outpaced the Zacks Consensus Estimate of 48 cents by 20.8%. However, the bottom-line figure declined 54.3% from the year-ago quarter’s adjusted earnings of $1.27.
Including one-time items, the company reported GAAP earnings of 10 cents compared with earnings of $1.11 per share in the year-ago quarter.
The year-over-year deterioration in the bottom line is attributable to charges related to the current economic environment, primarily attributable to the COVID-19 pandemic along with some restructuring costs.
Operational Performance
Raytheon Technologies’ third-quarter adjusted sales amounted to $15,047 million, while the company’s GAAP sales came in at $14,747 million. The company’s GAAP sales figure missed the Zacks Consensus Estimate of $15,132 million by 2.5%.
The company had reported GAAP sales worth $11,373 million in the year-ago quarter.
Total costs and expenses increased 50.4% year over year to $15,047 million. The company generated operating profit of $434 million compared with $1,430 million in the year-ago quarter.
Segmental Performance
Collins Aerospace: Adjusted sales at this segment declined 34% year over year to $4,278 million in third-quarter 2020 due to commercial sales decline attributable to lower in-flight hours, aircraft fleet utilization and commercial OEM deliveries. Impact of the 737 MAX grounding and lower ADS-B mandate volume also caused sales decline. Its adjusted operating income came in at $73 million compared with the year-ago quarter’s level of $1,286 million.
Pratt & Whitney: Adjusted sales at this segment declined 28% year over year to $3,494 million due to a significant reduction in shop visits and related spare part sales as well as lower commercial engine deliveries. Its adjusted operating loss was $43 million against the year-ago quarter’s operating income of $520 million.
Raytheon Intelligence & Space: This segment recorded third-quarter adjusted sales of $3,674 million and recorded $348 million of adjusted operating profit in the quarter.
Raytheon Missiles & Defense: This unit recorded third-quarter adjusted sales of $3,794 million and $453 million of adjusted operating profit in the quarter.
Financial Update
Raytheon Technologies ended Sep 30, 2020 with cash and cash equivalents of $10,001 million, up from $4,937 million as of Dec 31, 2019.
Long-term debt was $31,246 million, as of Sep 30, 2020, down from $37,701 million as of Dec 31, 2019.
Net cash inflow from operating activities amounted to $2,964 million at the end of third-quarter 2020 compared with $4,496 million in the year-ago period.
Its free cash flow was $1,792 million compared with $3,374 million at the end of third-quarter 2019.
Zacks Rank
Raytheon Technologies currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense Releases
Lockheed Martin (LMT - Free Report) reported third-quarter 2020 earnings from continuing operations of $6.25 per share, which surpassed the Zacks Consensus Estimate of $6.07 by 3%.
Hexcel Corporation (HXL - Free Report) reported third-quarter 2020 loss of 29 cents per share against the Zacks Consensus Estimate of earnings of 7 cents. The bottom line also declined from the prior-year quarter’s earnings per share of 90 cents.
Teledyne Technologies (TDY - Free Report) reported third-quarter 2020 adjusted earnings of $2.48 per share, which surpassed the Zacks Consensus Estimate of $2.40 by 3.3%.
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Raytheon Technologies Corporation (RTX - Free Report) third-quarter 2020 adjusted earnings per share (EPS) of 58 cents outpaced the Zacks Consensus Estimate of 48 cents by 20.8%. However, the bottom-line figure declined 54.3% from the year-ago quarter’s adjusted earnings of $1.27.
Including one-time items, the company reported GAAP earnings of 10 cents compared with earnings of $1.11 per share in the year-ago quarter.
The year-over-year deterioration in the bottom line is attributable to charges related to the current economic environment, primarily attributable to the COVID-19 pandemic along with some restructuring costs.
Operational Performance
Raytheon Technologies’ third-quarter adjusted sales amounted to $15,047 million, while the company’s GAAP sales came in at $14,747 million. The company’s GAAP sales figure missed the Zacks Consensus Estimate of $15,132 million by 2.5%.
The company had reported GAAP sales worth $11,373 million in the year-ago quarter.
Total costs and expenses increased 50.4% year over year to $15,047 million. The company generated operating profit of $434 million compared with $1,430 million in the year-ago quarter.
Segmental Performance
Collins Aerospace: Adjusted sales at this segment declined 34% year over year to $4,278 million in third-quarter 2020 due to commercial sales decline attributable to lower in-flight hours, aircraft fleet utilization and commercial OEM deliveries. Impact of the 737 MAX grounding and lower ADS-B mandate volume also caused sales decline. Its adjusted operating income came in at $73 million compared with the year-ago quarter’s level of $1,286 million.
Pratt & Whitney: Adjusted sales at this segment declined 28% year over year to $3,494 million due to a significant reduction in shop visits and related spare part sales as well as lower commercial engine deliveries. Its adjusted operating loss was $43 million against the year-ago quarter’s operating income of $520 million.
Raytheon Intelligence & Space: This segment recorded third-quarter adjusted sales of $3,674 million and recorded $348 million of adjusted operating profit in the quarter.
Raytheon Missiles & Defense: This unit recorded third-quarter adjusted sales of $3,794 million and $453 million of adjusted operating profit in the quarter.
Financial Update
Raytheon Technologies ended Sep 30, 2020 with cash and cash equivalents of $10,001 million, up from $4,937 million as of Dec 31, 2019.
Long-term debt was $31,246 million, as of Sep 30, 2020, down from $37,701 million as of Dec 31, 2019.
Net cash inflow from operating activities amounted to $2,964 million at the end of third-quarter 2020 compared with $4,496 million in the year-ago period.
Its free cash flow was $1,792 million compared with $3,374 million at the end of third-quarter 2019.
Zacks Rank
Raytheon Technologies currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense Releases
Lockheed Martin (LMT - Free Report) reported third-quarter 2020 earnings from continuing operations of $6.25 per share, which surpassed the Zacks Consensus Estimate of $6.07 by 3%.
Hexcel Corporation (HXL - Free Report) reported third-quarter 2020 loss of 29 cents per share against the Zacks Consensus Estimate of earnings of 7 cents. The bottom line also declined from the prior-year quarter’s earnings per share of 90 cents.
Teledyne Technologies (TDY - Free Report) reported third-quarter 2020 adjusted earnings of $2.48 per share, which surpassed the Zacks Consensus Estimate of $2.40 by 3.3%.
Just Released: Zacks’ 7 Best Stocks for Today
Experts extracted 7 stocks from the list of 220 Zacks Rank #1 Strong Buys that has beaten the market more than 2X over with a stunning average gain of +24.5% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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