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Raytheon Technologies (RTX) Q2 Earnings Beat, Sales Miss
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Raytheon Technologies Corporation’s (RTX - Free Report) second-quarter 2022 adjusted earnings per share (EPS) of $1.16 beat the Zacks Consensus Estimate of $1.12 by 3.6%. Moreover, the bottom-line figure improved 13% from the year-ago quarter’s adjusted earnings of $1.03.
Including one-time items, the company reported GAAP earnings of 88 cents compared with 69 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 driven by a solid summer travel season in the reported quarter.
Raytheon Technologies Corporation Price, Consensus and EPS Surprise
Raytheon Technologies’ second-quarter sales of $16,314 million missed the Zacks Consensus Estimate of $16,444 million by 0.8%. The sales figure, however, rose 3% from $15,880 million recorded in the year-ago quarter.
Total costs and expenses increased 2.1% year over year to $14,978 million. The company generated an operating profit of $1,353 million compared with $1,282 million in the year-ago quarter.
Segmental Performance
Collins Aerospace: Sales at this segment improved 10% year over year to $5,011 million in second-quarter 2022 driven by higher commercial aftermarket as well as commercial OEM sales.
Its adjusted operating income came in at $617 million compared with the year-ago quarter’s level of $518 million.
Pratt & Whitney: Sales at this segment rose 16% year over year to $4,969 million, driven by growth in the commercial aftermarket, military as well as commercial OEM businesses.
Its adjusted operating profit was $303 million compared with the year-ago quarter’s operating profit of $96 million.
Raytheon Intelligence & Space: This segment recorded second-quarter sales of $3,570 million, down 6% year over year. Its operating profit was $315 million, marking a decline of 24%.
Raytheon Missiles & Defense: This unit recorded sales of $3,558 million, down 11% year over year. The unit recorded $348 million operating profit in the second quarter, down 35%.
Financial Update
Raytheon Technologies had cash and cash equivalents of $4,767 million as of Jun 30, 2022, compared with $7,832 million as of Dec 31, 2021.
Long-term debt was $31,274 million as of Jun 30, 2022, down from $31,327 million as of Dec 31, 2021.
Net cash inflow from operating activities amounted to $1,762 million as of Jun 30, 2022 compared with $2,049 million at the end of second-quarter 2021.
Its free cash flow was $844 million at the end of second-quarter 2022 compared with $1,302 million at the end of second-quarter 2021.
Guidance
Raytheon Technologies reaffirmed 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 $4.76, lies above the midpoint of the company’s guided range.
The company also continues to expect revenues in the range of $67.75-$68.75 billion. The Zacks Consensus Estimate for revenues, pegged at $68.09 billion, lies below the midpoint of the company’s guidance.
The company still expects to generate free cash flow worth approximately $6 billion.
Zacks Rank
Raytheon Technologies currently carries a Zacks Rank #4 (Sell).
Upcoming Releases
Here are a few defense companies that are yet to release their quarterly results:
LHX delivered a four-quarter average earnings surprise of 2.32%. The Zacks Consensus Estimate for L3Harris’ second-quarter earnings, pegged at $3.16, has moved up 0.3% over the past seven days.
Spire Global, Inc. (SPIR - Free Report) : The company is scheduled to release its second-quarter results on Aug 10. It has a Zacks Rank #3.
Spire delivered an earnings surprise of 7.7% in the last reported quarter. The Zacks Consensus Estimate for Spire’s second-quarter sales is pegged at $18.93 billion.
Northrop Grumman (NOC - Free Report) : The company is expected to release its second-quarter results on Jul 28. It holds a Zacks Rank #3.
The Zacks Consensus Estimate for NOC’s second-quarter earnings, pegged at $6.03, has remained unchanged over the past seven days. NOC delivered a four-quarter average earnings surprise of 6.70%.
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Raytheon Technologies (RTX) Q2 Earnings Beat, Sales Miss
Raytheon Technologies Corporation’s (RTX - Free Report) second-quarter 2022 adjusted earnings per share (EPS) of $1.16 beat the Zacks Consensus Estimate of $1.12 by 3.6%. Moreover, the bottom-line figure improved 13% from the year-ago quarter’s adjusted earnings of $1.03.
Including one-time items, the company reported GAAP earnings of 88 cents compared with 69 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 driven by a solid summer travel season in the reported quarter.
Raytheon Technologies Corporation Price, Consensus and EPS Surprise
Raytheon Technologies Corporation price-consensus-eps-surprise-chart | Raytheon Technologies Corporation Quote
Operational Performance
Raytheon Technologies’ second-quarter sales of $16,314 million missed the Zacks Consensus Estimate of $16,444 million by 0.8%. The sales figure, however, rose 3% from $15,880 million recorded in the year-ago quarter.
Total costs and expenses increased 2.1% year over year to $14,978 million. The company generated an operating profit of $1,353 million compared with $1,282 million in the year-ago quarter.
Segmental Performance
Collins Aerospace: Sales at this segment improved 10% year over year to $5,011 million in second-quarter 2022 driven by higher commercial aftermarket as well as commercial OEM sales.
Its adjusted operating income came in at $617 million compared with the year-ago quarter’s level of $518 million.
Pratt & Whitney: Sales at this segment rose 16% year over year to $4,969 million, driven by growth in the commercial aftermarket, military as well as commercial OEM businesses.
Its adjusted operating profit was $303 million compared with the year-ago quarter’s operating profit of $96 million.
Raytheon Intelligence & Space: This segment recorded second-quarter sales of $3,570 million, down 6% year over year. Its operating profit was $315 million, marking a decline of 24%.
Raytheon Missiles & Defense: This unit recorded sales of $3,558 million, down 11% year over year. The unit recorded $348 million operating profit in the second quarter, down 35%.
Financial Update
Raytheon Technologies had cash and cash equivalents of $4,767 million as of Jun 30, 2022, compared with $7,832 million as of Dec 31, 2021.
Long-term debt was $31,274 million as of Jun 30, 2022, down from $31,327 million as of Dec 31, 2021.
Net cash inflow from operating activities amounted to $1,762 million as of Jun 30, 2022 compared with $2,049 million at the end of second-quarter 2021.
Its free cash flow was $844 million at the end of second-quarter 2022 compared with $1,302 million at the end of second-quarter 2021.
Guidance
Raytheon Technologies reaffirmed 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 $4.76, lies above the midpoint of the company’s guided range.
The company also continues to expect revenues in the range of $67.75-$68.75 billion. The Zacks Consensus Estimate for revenues, pegged at $68.09 billion, lies below the midpoint of the company’s guidance.
The company still expects to generate free cash flow worth approximately $6 billion.
Zacks Rank
Raytheon Technologies currently carries a Zacks Rank #4 (Sell).
Upcoming Releases
Here are a few defense companies that are yet to release their quarterly results:
L3Harris Technologies (LHX - Free Report) : It is scheduled to release its second-quarter results on Jul 28. LHX holds a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
LHX delivered a four-quarter average earnings surprise of 2.32%. The Zacks Consensus Estimate for L3Harris’ second-quarter earnings, pegged at $3.16, has moved up 0.3% over the past seven days.
Spire Global, Inc. (SPIR - Free Report) : The company is scheduled to release its second-quarter results on Aug 10. It has a Zacks Rank #3.
Spire delivered an earnings surprise of 7.7% in the last reported quarter. The Zacks Consensus Estimate for Spire’s second-quarter sales is pegged at $18.93 billion.
Northrop Grumman (NOC - Free Report) : The company is expected to release its second-quarter results on Jul 28. It holds a Zacks Rank #3.
The Zacks Consensus Estimate for NOC’s second-quarter earnings, pegged at $6.03, has remained unchanged over the past seven days. NOC delivered a four-quarter average earnings surprise of 6.70%.