Updates will allow for continued, rapid deliveries of Standard Missile variants to the U.S. and international fleetsTUCSON, Ariz., April 25, 2024 /PRNewswire/ -- Raytheon, an RTX (NYSE: RTX) business, has been awarded a $344 million contract for the development of two missile variants – the SM-2 Block IIICU and SM-6 Block IU – which will be based on a common guidance section, where the electronics and software that guide a missile to its target are housed. The SM-2 missile is primarily used by U.S. and a ...

There's uncertainty around the company's earnings potential from two key sources.RBC Capital recently raised its price target on aerospace and defense giant RTX (RTX -0.18%) to $96 from $88 while maintaining a "sector perform" rating on the stock. With the stock trading around $101, the updated price target suggests a 5.3% price drop over the next 12 months. I would also argue that a "sector perform" rating is, de facto, a sell rating. You can buy the sector through an ETF, so there's no need to take on sto ...

Expansion will support key missile programs including Glide Phase InterceptorHUNTSVILLE, Ala., April 23, 2024 /PRNewswire/ -- Raytheon, an RTX (NYSE: RTX) business, recently broke ground on a $115 million, 26,000 square-foot expansion of its Redstone Raytheon Missile Integration Facility, which will increase the factory's space for integrating and delivering on critical defense programs by more than 50 percent.The expansion will also bring an estimated 185 new jobs to the area, growing RTX's employee footpr ...

Financial Performance - Net sales for the quarter ended March 31, 2024, increased by $2.1 billion to $19.3 billion compared to $17.2 billion in the same quarter of 2023, primarily driven by organic sales growth of $2.1 billion [150]. - Total consolidated net sales for the quarter ended March 31, 2024, were $19,305 million, a 12.7% increase from $17,214 million in the same quarter of 2023 [1]. - Operating profit for the consolidated segment was $1,870 million, up 10.9% from $1,687 million in the prior year [1]. - Net income attributable to common shareowners increased to $1.709 billion in Q1 2024, up from $1.426 billion in Q1 2023, resulting in diluted earnings per share of $1.28 compared to $0.97 [182]. - Operating profit for Q1 2024 was $1.870 billion, compared to $1.687 billion in Q1 2023, with an operating profit margin of 9.7% [173]. - Total cost of sales increased to $15.744 billion in Q1 2024, up from $13.645 billion in Q1 2023, with the percentage of net sales rising to 81.6% from 79.3% [155]. Segment Performance - Collins Aerospace reported net sales of $6,673 million, a 9% increase from $6,120 million in Q1 2023, while operating profit decreased by 5% to $849 million [1][3]. - Pratt & Whitney's net sales increased by 23% to $6,456 million, with operating profit slightly decreasing by 1% to $412 million [1][3]. - Raytheon achieved net sales of $6,659 million, a 6% increase, and a significant operating profit increase of 74% to $996 million [1][3]. - Net services sales increased by $0.6 billion in Q1 2024 compared to Q1 2023, driven by increases at Pratt & Whitney ($0.3 billion), Raytheon ($0.2 billion), and Collins ($0.1 billion) [154]. - The organic net sales increase for Collins Aerospace was primarily driven by higher commercial aerospace aftermarket sales of $0.3 billion [1][4]. Costs and Expenses - The company recorded charges of $175 million in Q1 2024 due to supply chain disruptions and unfavorable purchase commitments related to titanium sourcing [136]. - High inflation levels have negatively impacted operating profit and margins, with increased material and labor costs affecting fixed-price contracts [137]. - The organic increase in total cost of sales was $1.8 billion for Q1 2024, driven by sales increases at Pratt & Whitney, Collins, and Raytheon [157]. - Research and development spending increased to $1.905 billion in Q1 2024, up from $1.729 billion in Q1 2023, with company-funded R&D at $0.669 billion and customer-funded R&D at $1.236 billion [163]. Cash Flow and Financing - Net cash flows provided by operating activities for Q1 2024 were $342 million, a significant improvement of $1.2 billion compared to a cash outflow of $863 million in Q1 2023 [233]. - Cash flows used in investing activities for Q1 2024 were $693 million, a change of $1.3 billion compared to a cash outflow of $579 million in Q1 2023, mainly due to the sale of the CIS business for approximately $1.3 billion [238][239]. - Net cash flows used in financing activities for Q1 2024 were $(2.0) billion, a decrease of $3.1 billion compared to $1.1 billion in Q1 2023, primarily due to long-term debt repayments [242][243]. - The company repurchased $56 million worth of common stock, totaling 616,000 shares, during Q1 2024, compared to $790 million in total dividends paid [245][246]. - Total debt as of March 31, 2024, was $42.8 billion, down from $43.8 billion as of December 31, 2023, with total equity increasing to $62.1 billion from $61.4 billion [222]. Strategic Initiatives and Risks - The company is pursuing strategic initiatives including digital transformation and operational modernization to address macroeconomic pressures [137]. - The ongoing geopolitical situation, including sanctions related to Russia and China, poses risks to the company's operations and supply chain [138][139]. - The defense business is influenced by U.S. Department of Defense budget levels and geopolitical risks, which may impact sales and approvals for foreign military sales [132]. - As of March 31, 2024, the company has $405 million in contract liabilities related to advance payments from a Middle East customer, which may become refundable if contracts are terminated [141]. Backlog and Bookings - Total backlog as of March 31, 2024, was approximately $202 billion, including a defense backlog of $77 billion [1][4]. - Defense bookings for the quarter were approximately $11 billion, down from $12 billion in the same quarter of 2023 [1][4]. - Raytheon booked significant contracts including $1.2 billion for Patriot Air Defense systems to Germany and $282 million for NASAMS for Ukraine [1][4].

gsmudger/iStock Editorial via Getty ImagesIntroduction It's time to do one of my favorite things - discuss RTX Corporation (NYSE:RTX). While I'm writing this, the company, formerly known as Raytheon Technologies, is my fifth-largest dividend (growth) investment and one of the most important holdings across all family portfolios. Although I have been a buyer since the end of the pandemic, I started to become a very aggressive buyer last year when RTX was hit with issues related to its GTF engine. Current ...

RTX Corporation (NYSE:RTX) Q1 2024 Earnings Call Transcript April 23, 2024 8:30 AM ET Company Participants Greg Hayes - Chairman and CEO Chris Calio - President and COO Neil Mitchill - CFO Jennifer Reed - VP of IR Conference Call Participants Myles Walton - Wolfe Research Kristine Liwag - Morgan Stanley Seth Seifman - JPMorgan Ron Epstein - Bank of America Cai Von Rumohr - TD Cowen Sheila Kahyaoglu - Jefferies Doug Harned - Bernstein David Strauss - Barclays Rob Stallard - Vertical Research Noah Poponak - G ...

RTX (RTX) reported $19.31 billion in revenue for the quarter ended March 2024, representing a year-over-year increase of 12.2%. EPS of $1.34 for the same period compares to $1.22 a year ago.The reported revenue represents a surprise of +4.85% over the Zacks Consensus Estimate of $18.41 billion. With the consensus EPS estimate being $1.23, the EPS surprise was +8.94%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their ne ...

1 For the full non-GAAP reconciliation of our segment sales and operating profit, refer to slides 20-22. For the full reconciliation of our non-operating results, net income and EPS refer to slide 24. 1 Refer to slides 20-22 for individual net sales and operating profit adjustments (Unaudited) © 2024 RTX Corporation. All rights reserved. % RTX collins aerospace | pratt & Whitney | raytheon Forward-Looking Statements 1 Note: All results and expectations in the presentation reflect continuing operations unles ...

RTX (RTX) came out with quarterly earnings of $1.34 per share, beating the Zacks Consensus Estimate of $1.23 per share. This compares to earnings of $1.22 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 8.94%. A quarter ago, it was expected that this an aerospace and defense company would post earnings of $1.25 per share when it actually produced earnings of $1.29, delivering a surprise of 3.20%.Over the last four quarters, th ...

RTX Corp (NYSE: RTX) is trading down in premarket on Tuesday even though it came in ahead of Street estimates for its first financial quarter. Are you looking for signals & alerts from pro-traders? Sign-up to Invezz Signals™ for FREE. Takes 2 mins.Why is RTX stock down on Tuesday?Copy link to sectionInvestors are not entirely satisfied perhaps because the aerospace giant did not raise its guidance for the full year.  RTX continues to see its sales fall between $78 billion and $79 billion on up to $5.40 of p ...