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Raytheon Technologies (RTN) Q1 Earnings Beat, Sales Fall Y/Y

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Raytheon Technologies Corporation (RTX - Free Report) reported first-quarter 2020 results, which included standalone United Technologies along with Otis and Carrier. The company’s adjusted earnings per share (EPS) of $1.78 outpaced the Zacks Consensus Estimate of $1.11 by 60.4%.

However, the bottom-line figure declined 6.8% from the year-ago quarter’s $1.91.

Including one-time items, the company reported loss of 10 cents against earnings of $1.56 per share in the year-ago quarter.

Operational Performance

Raytheon Technologies’ first-quarter sales of $18,210 million inched down 0.8% on a year-over-year basis. The top line, however, beat the Zacks Consensus Estimate of $18,136 million by a whisker.

Total costs and expenses dropped 0.6% year over year to $16,327 million. The company’s operating income of $1,807 million declined11.6% year over year.

Segmental Performance

Otis: Sales at this segment declined 4.2% year over year to $2,966 million in first-quarter 2020. Its adjusted operating income came in at $468 million compared with the year-ago quarter’s level of $451 million.

Carrier: Sales at this segment declined 10.1% year over year to $3,888 million in first- quarter 2020. Its adjusted operating income came in at $456 million compared withthe year- ago quarter’s level of $562 million.

Pratt & Whitney: Sales at this segment improved 11.1% year over year to $5,351 million in first-quarter 2020. Its adjusted operating income came in at $439 million compared withthe year-ago quarter’s level of $447 million.

Collins Aerospace Systems: Sales at this segment dropped1.2% year over year to $6,438 million in first-quarter 2020. Its adjusted operating income came in at $1,138 million compared with the year-ago quarter’s level of $1,101 million.

Financial Update

Raytheon Technologies ended Mar 31, 2020 with cash and cash equivalents of $8,001 million, up from $7,378 million as of Dec 31, 2019.

Long-term debt was $43,232 million, as of Mar 31, 2020, up from $37,788 million as of Dec 31, 2019.

Net cash inflow from operating activities amounted to $661 million in first-quarter 2020 compared with $1,500 million in the first quarter of 2019.

Guidance

Given the ongoing uncertainty regarding the scope, severity and duration of the COVID-19 pandemic, Raytheon Technologies did not provide guidance. However, it is expected to revisit its 2020 view at its next earnings release.

Zacks Rank

Raytheon Technologies currently carries a Zacks Rank #5 (Strong Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Recent Defense Releases

Teledyne Technologies Inc. (TDY - Free Report) reported first-quarter 2020 earnings of $2.28 per share, which surpassed the Zacks Consensus Estimate of $2.10 by 8.6%.

Lockheed Martin Corp. (LMT - Free Report) reported first-quarter 2020 earnings of $6.08 per share, which surpassed the Zacks Consensus Estimate of $5.76 by 5.5%.

Hexcel Corporation (HXL - Free Report) reported first-quarter 2020 adjusted earnings of 64 cents per share, which missed the Zacks Consensus Estimate of 67 cents by 4.5%.

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