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RTX Q4 Earnings Surpass Estimates by 3%, Sales Increase Y/Y
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RTX Corporation’s (RTX - Free Report) fourth-quarter 2023 adjusted earnings per share (EPS) of $1.29 beat the Zacks Consensus Estimate of $1.25 by 3.2%. The bottom line also improved 1.6% from the year-ago quarter’s level of $1.27.
Including one-time items, the company reported GAAP earnings of $1.05 per share compared with 96 cents reported in the prior-year quarter.
The company’s 2023 adjusted EPS of $5.06 beat the Zacks Consensus Estimate of $5.01 by 1%. The full-year bottom line also improved 5.9% from the year-ago level of $4.78.
RTX’s fourth-quarter adjusted sales totaled $19,824 million. The company reported GAAP sales of $19,927 million compared with $18,093 million in the fourth quarter of 2022.
The Zacks Consensus Estimate is pegged at $19,830 million.
The company’s 2023 adjusted sales of $74.31 billion beat the Zacks Consensus Estimate of $74.18 billion by 0.2%.
Total costs and expenses increased 9% year over year to $18,120 million. The company generated an operating profit of $1,777 million compared with $1,491 million in the prior-year quarter.
Segmental Performance
Collins Aerospace: Adjusted sales at this segment totaled $7,008 million. This unit’s GAAP sales improved 14% year over year to $7,120 million. This improvement can be attributed to higher commercial aftermarket and commercial OEM sales, backed by strong demand across commercial aerospace end markets. Increased military sales driven by favorable timing of deliveries also benefited this unit’s sales.
The adjusted operating income totaled $1,035 million compared with the year-ago quarter’s level of $845 million.
Pratt & Whitney: This segment’s sales totaled $6,439 million, up 14% from the year-ago quarter’s level. The improvement was due to growth in the commercial aftermarket and commercial OEM businesses, as well as a favorable mix. Increased military sales driven by higher sustainment volume also contributed to this unit’s sales growth.
Adjusted operating profit amounted to $405 million compared with the year-ago quarter’s level of $321 million.
Raytheon: This segment recorded fourth-quarter sales of $6,886 million, up 3% year over year, driven by higher sales volume from advanced technology and air power programs.
The adjusted operating profit amounted to $618 million, up 8% from $570 million recorded in the corresponding period of 2022.
Financial Update
RTX had cash and cash equivalents of $6,587 million as of Dec 31, 2023, compared with $6,220 million as of Dec 31, 2022.
Long-term debt totaled $42,355 million as of Dec 31, 2023, up from $30,694 million as of Dec 31, 2022.
Net cash flow from operating activities was $7,883 million as of Dec 31, 2023, compared with $7,168 million at the end of fourth-quarter 2022.
Free cash flow totaled $3,906 million at the end of 2023 compared with $3,773 million at the end of 2022.
Guidance
RTX provided its financial guidance for 2024.
The company currently projects adjusted EPS in the band of $5.25-$5.40. The Zacks Consensus Estimate for RTX’s 2023 EPS is pegged at $5.40, in line with the higher end of the company’s guided range.
RTX expects to generate sales of $78-$79 billion in 2024. The Zacks Consensus Estimate for sales is pegged at $79.32 billion, which lies above the company’s guidance.
The company now expects free cash flow of $5.7 billion for 2024.
Textron (TXT - Free Report) is scheduled to report fourth-quarter 2023 results on Jan 24, before market open. The Zacks Consensus Estimate for revenues is pegged at $3.92 billion, indicating a 7.8% increase from the year-ago quarter’s reported figure.
The consensus mark for Textron’s earnings is pinned at $1.53 per share, indicating a 43% year-over-year improvement.
The Boeing Company (BA - Free Report) is set to release fourth-quarter 2023 results on Jan 31, before the opening bell. The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $21.23 billion, indicating a 6.2% year-over-year increase.
The bottom-line estimate for BA is pegged at a loss of 72 cents per share, indicating a significant improvement from the year-ago quarter’s reported loss of $1.75.
Northrop Grumman (NOC - Free Report) is scheduled to report fourth-quarter 2023 results on Jan 25, before market open. The Zacks Consensus Estimate for revenues is pegged at $10.44 billion, indicating a 4% increase from the year-ago quarter’s reported figure.
The consensus mark for Northrop’s earnings is pinned at $5.75 per share, indicating a 23.3% year-over-year decline.
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RTX Q4 Earnings Surpass Estimates by 3%, Sales Increase Y/Y
RTX Corporation’s (RTX - Free Report) fourth-quarter 2023 adjusted earnings per share (EPS) of $1.29 beat the Zacks Consensus Estimate of $1.25 by 3.2%. The bottom line also improved 1.6% from the year-ago quarter’s level of $1.27.
Including one-time items, the company reported GAAP earnings of $1.05 per share compared with 96 cents reported in the prior-year quarter.
The company’s 2023 adjusted EPS of $5.06 beat the Zacks Consensus Estimate of $5.01 by 1%. The full-year bottom line also improved 5.9% from the year-ago level of $4.78.
RTX Corporation Price, Consensus and EPS Surprise
RTX Corporation price-consensus-eps-surprise-chart | RTX Corporation Quote
Operational Performance
RTX’s fourth-quarter adjusted sales totaled $19,824 million. The company reported GAAP sales of $19,927 million compared with $18,093 million in the fourth quarter of 2022.
The Zacks Consensus Estimate is pegged at $19,830 million.
The company’s 2023 adjusted sales of $74.31 billion beat the Zacks Consensus Estimate of $74.18 billion by 0.2%.
Total costs and expenses increased 9% year over year to $18,120 million. The company generated an operating profit of $1,777 million compared with $1,491 million in the prior-year quarter.
Segmental Performance
Collins Aerospace: Adjusted sales at this segment totaled $7,008 million. This unit’s GAAP sales improved 14% year over year to $7,120 million. This improvement can be attributed to higher commercial aftermarket and commercial OEM sales, backed by strong demand across commercial aerospace end markets. Increased military sales driven by favorable timing of deliveries also benefited this unit’s sales.
The adjusted operating income totaled $1,035 million compared with the year-ago quarter’s level of $845 million.
Pratt & Whitney: This segment’s sales totaled $6,439 million, up 14% from the year-ago quarter’s level. The improvement was due to growth in the commercial aftermarket and commercial OEM businesses, as well as a favorable mix. Increased military sales driven by higher sustainment volume also contributed to this unit’s sales growth.
Adjusted operating profit amounted to $405 million compared with the year-ago quarter’s level of $321 million.
Raytheon: This segment recorded fourth-quarter sales of $6,886 million, up 3% year over year, driven by higher sales volume from advanced technology and air power programs.
The adjusted operating profit amounted to $618 million, up 8% from $570 million recorded in the corresponding period of 2022.
Financial Update
RTX had cash and cash equivalents of $6,587 million as of Dec 31, 2023, compared with $6,220 million as of Dec 31, 2022.
Long-term debt totaled $42,355 million as of Dec 31, 2023, up from $30,694 million as of Dec 31, 2022.
Net cash flow from operating activities was $7,883 million as of Dec 31, 2023, compared with $7,168 million at the end of fourth-quarter 2022.
Free cash flow totaled $3,906 million at the end of 2023 compared with $3,773 million at the end of 2022.
Guidance
RTX provided its financial guidance for 2024.
The company currently projects adjusted EPS in the band of $5.25-$5.40. The Zacks Consensus Estimate for RTX’s 2023 EPS is pegged at $5.40, in line with the higher end of the company’s guided range.
RTX expects to generate sales of $78-$79 billion in 2024. The Zacks Consensus Estimate for sales is pegged at $79.32 billion, which lies above the company’s guidance.
The company now expects free cash flow of $5.7 billion for 2024.
Zacks Rank
RTX currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Upcoming Q4 Defense Earnings
Textron (TXT - Free Report) is scheduled to report fourth-quarter 2023 results on Jan 24, before market open. The Zacks Consensus Estimate for revenues is pegged at $3.92 billion, indicating a 7.8% increase from the year-ago quarter’s reported figure.
The consensus mark for Textron’s earnings is pinned at $1.53 per share, indicating a 43% year-over-year improvement.
The Boeing Company (BA - Free Report) is set to release fourth-quarter 2023 results on Jan 31, before the opening bell. The Zacks Consensus Estimate for fourth-quarter revenues is pegged at $21.23 billion, indicating a 6.2% year-over-year increase.
The bottom-line estimate for BA is pegged at a loss of 72 cents per share, indicating a significant improvement from the year-ago quarter’s reported loss of $1.75.
Northrop Grumman (NOC - Free Report) is scheduled to report fourth-quarter 2023 results on Jan 25, before market open. The Zacks Consensus Estimate for revenues is pegged at $10.44 billion, indicating a 4% increase from the year-ago quarter’s reported figure.
The consensus mark for Northrop’s earnings is pinned at $5.75 per share, indicating a 23.3% year-over-year decline.