Raytheon Technologies Corporation’s (RTX - Free Report) first-quarter 2022 adjusted earnings per share (EPS) of $1.15 beat the Zacks Consensus Estimate of $1.01 by 13.9%. Moreover, the bottom-line figure improved 27.8% from the year-ago quarter’s adjusted earnings of 90 cents.
Including one-time items, the company reported GAAP earnings of 74 cents compared with 51 cents per share recorded in the year-ago quarter.
The year-over-year improvement in the bottom line was attributable to higher year-over-year sales as well as operating profit generated in the reported quarter.
Operational Performance
Raytheon Technologies’ first-quarter sales of $15,716 million missed the Zacks Consensus Estimate of $15,799 million by 0.5%. The sales figure, however, rose 3% from $15,251 million recorded in the year-ago quarter.
Total costs and expenses increased 2.2% year over year to $14,664 million. The company generated an operating profit of $1,080 million compared with $1,013 million in the year-ago quarter.
Segmental Performance
Collins Aerospace: Sales at this segment improved 10% year over year to $4,824 million in first-quarter 2022 driven by higher commercial aftermarket as well as commercial OEM sales.
Its adjusted operating income came in at $584 million compared with the year-ago quarter’s level of $332 million.
Pratt & Whitney: Sales at this segment rose 12% year over year to $4,529 million, driven by growth in the commercial aftermarket as well as commercial OEM businesses.
Its adjusted operating profit was $308 million compared with the year-ago quarter’s operating profit of $40 million.
Raytheon Intelligence & Space: This segment recorded first-quarter sales of $3,572 million, down 5% year over year. Its operating profit was $378 million, marking a decline of 3%.
Raytheon Missiles & Defense: This unit recorded sales of $3,527 million, down 7% year over year. The unit recorded $387 million of operating profit in the first quarter, down 22%.
Financial Update
Raytheon Technologies had cash and cash equivalents of $6,040 million as of Mar 31, 2022, compared with $7,832 million as of Dec 31, 2021.
Long-term debt was $31,308 million, as of Mar 31, 2022, down from $31,327 million as of Dec 31, 2021.
Net cash inflow from operating activities amounted to $476 million during the first quarter compared with $723 million in first-quarter 2021.
Its free cash flow was $37 million at the end of first-quarter 2022 compared with $336 million at the end of first-quarter 2021.
Guidance
Raytheon Technologies updated its financial guidance for 2022.
The company still projects adjusted EPS in the range of $4.60-$4.80. The Zacks Consensus Estimate for Raytheon’s 2022 EPS, pegged at $4.79, lies near the higher end of the company’s guided range.
The company currently expects to record revenues in the range of $67.75-$68.75 billion, down from the prior guidance of $68.5-$69.5 billion. The Zacks Consensus Estimate for revenues, pegged at $68.78 billion, lies above the company’s new guidance.
The company continues to expect to generate free cash flow worth approximately $6 billion.
Zacks Rank
Raytheon Technologies currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Here are a few defense companies that are yet to release their quarterly results:
Northrop Grumman (NOC - Free Report) is scheduled to release its first-quarter 2022 results on Apr 28. The stock has a Zacks Rank #3.
Northrop Grumman has a four-quarter average earnings surprise of 11.05%. The long-term earnings growth rate of NOC stands at 6.2%. The Zacks Consensus Estimate for Northrop’s first-quarter sales and earnings is pegged at $8.88 billion and $5.95 per share, respectively.
Spirit Aerosystems (SPR - Free Report) is set to announce its first-quarter results on May 4. The stock has a Zacks Rank #3. It has a four-quarter average negative earnings surprise of 14.56%.
The long-term earnings growth rate of SPR stands at 8.5%. The Zacks Consensus Estimate for Spirit Aerosystems’ first-quarter sales is pegged at $1.09 billion. The consensus estimate for the bottom line is pegged at 61 cents per share.
CAE (CAE - Free Report) is expected to release ts fourth-quarter fiscal 2022 results soon. It has a Zacks Rank #3. CAE delivered a four-quarter average earnings surprise of 0.72%.
The long-term earnings growth rate of CAE is pegged at 8%. The Zacks Consensus Estimate for CAE’s first-quarter sales and earnings is pegged at $744.5 million and 18 cents per share, respectively.
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Raytheon Technologies Corporation’s (RTX - Free Report) first-quarter 2022 adjusted earnings per share (EPS) of $1.15 beat the Zacks Consensus Estimate of $1.01 by 13.9%. Moreover, the bottom-line figure improved 27.8% from the year-ago quarter’s adjusted earnings of 90 cents.
Including one-time items, the company reported GAAP earnings of 74 cents compared with 51 cents per share recorded in the year-ago quarter.
The year-over-year improvement in the bottom line was attributable to higher year-over-year sales as well as operating profit generated in the reported quarter.
Operational Performance
Raytheon Technologies’ first-quarter sales of $15,716 million missed the Zacks Consensus Estimate of $15,799 million by 0.5%. The sales figure, however, rose 3% from $15,251 million recorded in the year-ago quarter.
Total costs and expenses increased 2.2% year over year to $14,664 million. The company generated an operating profit of $1,080 million compared with $1,013 million in the year-ago quarter.
Segmental Performance
Collins Aerospace: Sales at this segment improved 10% year over year to $4,824 million in first-quarter 2022 driven by higher commercial aftermarket as well as commercial OEM sales.
Its adjusted operating income came in at $584 million compared with the year-ago quarter’s level of $332 million.
Pratt & Whitney: Sales at this segment rose 12% year over year to $4,529 million, driven by growth in the commercial aftermarket as well as commercial OEM businesses.
Its adjusted operating profit was $308 million compared with the year-ago quarter’s operating profit of $40 million.
Raytheon Intelligence & Space: This segment recorded first-quarter sales of $3,572 million, down 5% year over year. Its operating profit was $378 million, marking a decline of 3%.
Raytheon Missiles & Defense: This unit recorded sales of $3,527 million, down 7% year over year. The unit recorded $387 million of operating profit in the first quarter, down 22%.
Financial Update
Raytheon Technologies had cash and cash equivalents of $6,040 million as of Mar 31, 2022, compared with $7,832 million as of Dec 31, 2021.
Long-term debt was $31,308 million, as of Mar 31, 2022, down from $31,327 million as of Dec 31, 2021.
Net cash inflow from operating activities amounted to $476 million during the first quarter compared with $723 million in first-quarter 2021.
Its free cash flow was $37 million at the end of first-quarter 2022 compared with $336 million at the end of first-quarter 2021.
Guidance
Raytheon Technologies updated its financial guidance for 2022.
The company still projects adjusted EPS in the range of $4.60-$4.80. The Zacks Consensus Estimate for Raytheon’s 2022 EPS, pegged at $4.79, lies near the higher end of the company’s guided range.
The company currently expects to record revenues in the range of $67.75-$68.75 billion, down from the prior guidance of $68.5-$69.5 billion. The Zacks Consensus Estimate for revenues, pegged at $68.78 billion, lies above the company’s new guidance.
The company continues to expect to generate free cash flow worth approximately $6 billion.
Zacks Rank
Raytheon Technologies currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Releases
Here are a few defense companies that are yet to release their quarterly results:
Northrop Grumman (NOC - Free Report) is scheduled to release its first-quarter 2022 results on Apr 28. The stock has a Zacks Rank #3.
Northrop Grumman has a four-quarter average earnings surprise of 11.05%. The long-term earnings growth rate of NOC stands at 6.2%. The Zacks Consensus Estimate for Northrop’s first-quarter sales and earnings is pegged at $8.88 billion and $5.95 per share, respectively.
Spirit Aerosystems (SPR - Free Report) is set to announce its first-quarter results on May 4. The stock has a Zacks Rank #3. It has a four-quarter average negative earnings surprise of 14.56%.
The long-term earnings growth rate of SPR stands at 8.5%. The Zacks Consensus Estimate for Spirit Aerosystems’ first-quarter sales is pegged at $1.09 billion. The consensus estimate for the bottom line is pegged at 61 cents per share.
CAE (CAE - Free Report) is expected to release ts fourth-quarter fiscal 2022 results soon. It has a Zacks Rank #3. CAE delivered a four-quarter average earnings surprise of 0.72%.
The long-term earnings growth rate of CAE is pegged at 8%. The Zacks Consensus Estimate for CAE’s first-quarter sales and earnings is pegged at $744.5 million and 18 cents per share, respectively.
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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