Aerospace and defense company Raytheon (NYSE: RTX) will be reporting results this Tuesday before market open. Here’s what to look for.
RTX beat analysts’ revenue expectations by 1.7% last quarter, reporting revenues of $20.31 billion, up 5.2% year on year. It was a strong quarter for the company, with a solid beat of analysts’ EBITDA estimates and an impressive beat of analysts’ adjusted operating income estimates.
Is RTX a buy or sell going into earnings? Read our full analysis here, it’s free.
This quarter, analysts are expecting RTX’s revenue to grow 4.4% year on year to $20.65 billion, slowing from the 8.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.43 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. RTX has a history of exceeding Wall Street’s expectations, beating revenue estimates every single time over the past two years by 3.3% on average.
Looking at RTX’s peers in the aerospace and defense segment, some have already reported their Q2 results, giving us a hint as to what we can expect. AAR delivered year-on-year revenue growth of 14.9%, beating analysts’ expectations by 8.6%, and Byrna reported revenues up 40.6%, in line with consensus estimates. AAR traded up 13.4% following the results while Byrna was down 28.8%.
Read our full analysis of AAR’s results here and Byrna’s results here.
There has been positive sentiment among investors in the aerospace and defense segment, with share prices up 6.5% on average over the last month. RTX is up 4.1% during the same time and is heading into earnings with an average analyst price target of $150.29 (compared to the current share price of $151.80).
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