Raytheon Technologies Corporation’s ( RTX Quick Quote RTX - Free Report) fourth-quarter 2021 adjusted earnings per share (EPS) of $1.08 beat the Zacks Consensus Estimate of $1.01 by 6.9%. Moreover, the bottom-line figure improved 46% from the year-ago quarter’s adjusted earnings of 74 cents.
Including one-time items, the company reported GAAP earnings of 46 cents compared with 10 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 revenues as well as operating profit generated in the reported quarter.
The company reported an adjusted EPS of $4.27 for full-year 2021, which improved 56% from 2020. Full-year earnings exceeded the Zacks Consensus Estimate of $4.19 by 1.9%.
Raytheon Technologies’ fourth-quarter sales of $17,044 million missed the Zacks Consensus Estimate of $17,215 million by 1%. The sales figure, however, rose 4% from $16,419 million recorded in the year-ago quarter.
During full-year 2021, the company generated sales worth $64.39 billion, up 14% from the year-ago figure. Full-year sales missed the Zacks Consensus Estimate of $64.60 billion by a whisker.
Total costs and expenses dropped 4.6% year over year to $13,616 million. The company generated an operating profit of $1,320 million compared with $142 million in the year-ago quarter.
Segmental Performance Collins Aerospace: Sales at this segment improved 13% year over year to $4,942 million in fourth-quarter 2021 due to higher commercial aftermarket as well as commercial OEM sales.
Its adjusted operating income came in at $469 million compared with the year-ago quarter’s level of $89 million.
Pratt & Whitney: Sales at this segment rose 15% year over year to $5,115 million, driven by growth in the commercial aftermarket as well as commercial OEM businesses.
Its adjusted operating profit was $162 million against the year-ago quarter’s operating profit of $105 million.
Raytheon Intelligence & Space: This segment recorded fourth-quarter sales of $3,870 million, which slipped 2% year over year. Its operating profit was $400 million, up 11%. Raytheon Missiles & Defense: This unit recorded sales of $3,859 million, down 8% year over year. The unit recorded $486 million of operating profit in the fourth quarter, down 16%. Financial Update
Raytheon Technologies had cash and cash equivalents of $7,832 million as of Dec 31, 2021, compared with $8,802 million as of Dec 31, 2020.
Long-term debt was $31,327 million, as of Dec 31, 2021, up from $31,026 million as of Dec 31, 2020.
Net cash inflow from operating activities amounted to $7,142 million at the end of 2021 compared with $4,334 million at the end of 2020.
Its free cash flow was $5,008 million at the end of 2021 compared with $2,539 million at the end of 2020.
Raytheon Technologies provided its financial guidance for 2022.
The company currently projects adjusted EPS in the range of $4.60-$4.80. The Zacks Consensus Estimate for Raytheon’s 2021 EPS, pegged at $4.90, lies above the company’s guided range.
The company currently expects to record revenues in the range of $68.5-$69.5 billion. The Zacks Consensus Estimate for revenues, pegged at $69.79 billion, lies above the company’s new guidance.
The company currently expects to generate free cash flow worth approximately $6 billion.
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 Stocks to Consider
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