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What Awaits Raytheon Technologies (RTX) in Q2 Earnings?
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Raytheon Technologies Corp. (RTX - Free Report) is set to release second-quarter 2020 results on Jul 28, before market open.
The Zacks Consensus Estimate for the company’s second-quarter earnings of 10 cents has declined 66.7% over the past 30 days.
Let’s see how things have shaped up prior to this announcement.
Factors to Note
On Apr 3, 2020, missile-maker Raytheon Company completed its merger with multinational conglomerate United Technologies to form aerospace and defense giant Raytheon Technologies. The combined company’s second quarter results are expected to reflect the positive synergies from the merger.
Raytheon Technologies Corporation Price and EPS Surprise
However, issues related to the coronavirus outbreak started affecting the company since March 2020, primarily related to a facility closures, lack of staffing, and disruptions in supplier deliveries, most significantly in its commercial aerospace businesses. In particular, the significant decrease in air travel resulting from the pandemic is expected to have affected Raytheon Technologies’ airline and airframer customers, and thereby demand for products and services of its Aerospace businesses.
This in turn might have dragged down the company’s second-quarter revenues.
Escalating costs of raw materials like steel have been pushing up expenses of defense manufacturers like Raytheon Technologies. On top of that, rising tariffs on imports of steel and aluminum in the United States have been pushing up expenses for manufacturers. In addition, the company has implementedrotating shifts for social distancing and is providing appropriate personal protective equipment for employees who cannot work from home.All these costs along with integration cost that the new company is incurring on account of the merger are likely to have adversely impacted its earnings in the second quarter.
Q2 Expectations
Currently, the Zacks Consensus Estimate for Raytheon Technologies’ earnings is pegged at 10 cents on revenues of $13.98 billion, indicating 95.5% and 28.8% decline from the respective year-ago quarter numbers, which are derived from combining the quarterly figures of legacy Raytheon and United Technologies.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Raytheon Technologies this time around. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That’s not the case here.You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Raytheon Technologies has an Earnings ESP of -67.95%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #4 (Sell).
Stocks to Consider
Here are some defense companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this reporting cycle.
Curtiss-Wright Corp. (CW - Free Report) has an Earnings ESP of +13.62% and a Zacks Rank #3.
Leidos Holdings, Inc. (LDOS - Free Report) has an Earnings ESP of +0.11% and a Zacks Rank #3.
A Recent Defense Release
Lockheed Martin (LMT - Free Report) reported second-quarter 2020 adjusted earnings of $6.13 per share, which surpassed the Zacks Consensus Estimate of $5.71 by 7.4%.
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 +24.1% per year.
These 7 were selected because of their superior potential for immediate breakout.
Image: Bigstock
What Awaits Raytheon Technologies (RTX) in Q2 Earnings?
Raytheon Technologies Corp. (RTX - Free Report) is set to release second-quarter 2020 results on Jul 28, before market open.
The Zacks Consensus Estimate for the company’s second-quarter earnings of 10 cents has declined 66.7% over the past 30 days.
Let’s see how things have shaped up prior to this announcement.
Factors to Note
On Apr 3, 2020, missile-maker Raytheon Company completed its merger with multinational conglomerate United Technologies to form aerospace and defense giant Raytheon Technologies. The combined company’s second quarter results are expected to reflect the positive synergies from the merger.
Raytheon Technologies Corporation Price and EPS Surprise
Raytheon Technologies Corporation price-eps-surprise | Raytheon Technologies Corporation Quote
However, issues related to the coronavirus outbreak started affecting the company since March 2020, primarily related to a facility closures, lack of staffing, and disruptions in supplier deliveries, most significantly in its commercial aerospace businesses. In particular, the significant decrease in air travel resulting from the pandemic is expected to have affected Raytheon Technologies’ airline and airframer customers, and thereby demand for products and services of its Aerospace businesses.
This in turn might have dragged down the company’s second-quarter revenues.
Escalating costs of raw materials like steel have been pushing up expenses of defense manufacturers like Raytheon Technologies. On top of that, rising tariffs on imports of steel and aluminum in the United States have been pushing up expenses for manufacturers. In addition, the company has implementedrotating shifts for social distancing and is providing appropriate personal protective equipment for employees who cannot work from home.All these costs along with integration cost that the new company is incurring on account of the merger are likely to have adversely impacted its earnings in the second quarter.
Q2 Expectations
Currently, the Zacks Consensus Estimate for Raytheon Technologies’ earnings is pegged at 10 cents on revenues of $13.98 billion, indicating 95.5% and 28.8% decline from the respective year-ago quarter numbers, which are derived from combining the quarterly figures of legacy Raytheon and United Technologies.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Raytheon Technologies this time around. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. That’s not the case here.You can see the complete list of today’s Zacks #1 Rank stocks here.
Earnings ESP: Raytheon Technologies has an Earnings ESP of -67.95%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #4 (Sell).
Stocks to Consider
Here are some defense companies you may want to consider, as our model shows that these have the right combination of elements to post an earnings beat this reporting cycle.
Curtiss-Wright Corp. (CW - Free Report) has an Earnings ESP of +13.62% and a Zacks Rank #3.
Leidos Holdings, Inc. (LDOS - Free Report) has an Earnings ESP of +0.11% and a Zacks Rank #3.
A Recent Defense Release
Lockheed Martin (LMT - Free Report) reported second-quarter 2020 adjusted earnings of $6.13 per share, which surpassed the Zacks Consensus Estimate of $5.71 by 7.4%.
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 +24.1% per year.
These 7 were selected because of their superior potential for immediate breakout.
See these time-sensitive tickers now >>