Core Viewpoint - RTX reported a significant decline in second-quarter earnings, with a 91% drop to 0.08pershare,despitean81.33 in various charges, which included acquisition accounting adjustments and litigation charges, suggesting that adjusted earnings could have been 1.41pershare[4]−Thelegacydefensebusiness,whichwasthecoreoftheformerRaytheon,sawa3206 billion, indicating a solid pipeline of contracts for the next three years [9] - The company raised its sales guidance for 2024 to over 79billion,withadjustedearningsexpectedtoexceed5.35 per share [10] Valuation Concerns - The stock is currently valued at 22 times earnings and over 33 times forecast free cash flow of $4.7 billion, raising concerns about its valuation relative to expected profit growth of 11% annually over the next five years [11] - There are apprehensions that if one-time charges continue, the stock could become even more expensive [12]
Raytheon Technologies(RTX) The Motley Fool·2024-08-07 11:45