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RTX shares down 1% despite earnings beat

Published 23/04/2024, 12:08
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RTX
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ARLINGTON, Va. - Raytheon (NYSE:RTN) Technologies (NYSE: NYSE:RTX) has reported a notable first quarter for 2024, with adjusted earnings per share (EPS) of $1.34, surpassing analyst expectations by $0.11 and marking a 10% increase from the previous year.

The company's revenue also exceeded forecasts, coming in at $19.31 billion against the consensus estimate of $18.46 billion, representing a 12% rise from the same quarter last year.

Still, the defense and aerospace giant saw its shares fall by 1% following the announcement.

President and Chief Operating Officer Chris Calio credited the company's success to its strategic execution and focus on delivering for customers and shareholders. "We're operating in one of the strongest demand periods in our history with a record $202 billion backlog and a portfolio of products and services which are fully aligned to our customers' top priorities," Calio stated.

RTX's GAAP EPS of $1.28, which included various adjustments such as acquisition accounting and a net gain from divestitures, was a significant 32% improvement from the prior year.

The company also reaffirmed its full-year outlook for 2024, expecting adjusted EPS to range between $5.25 and $5.40, with the midpoint of $5.325 slightly below the analyst consensus of $5.39. RTX anticipates full-year revenue to be between $78 billion and $79 billion, with the midpoint of $78.5 billion marginally below the consensus estimate of $78.78 billion.

The company's financial health was further evidenced by the completion of a divestiture that generated $1.3 billion in gross proceeds, contributing to a robust operating cash flow of $0.3 billion for the quarter. Despite facing higher interest expenses and lower pension income, RTX managed to maintain flat adjusted net income year-over-year at $1.8 billion.

Calio remains optimistic about the company's trajectory, emphasizing investments in operational modernization, digital transformation, and technological innovation to sustain growth. "Our focus on execution and driving performance and margin expansion is supported by our CORE operating system," he added.

Investors will likely keep a close eye on RTX's progress throughout the year, as the company continues to navigate a dynamic global market landscape while leveraging its strong backlog and strategic initiatives.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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