Aerospace and defense company Raytheon (NYSE:RTX) will be reporting results this Tuesday morning. Here’s what investors should know.
RTX beat analysts’ revenue expectations last quarter, reporting revenues of $24.71 billion, up 14.5% year on year. It was an exceptional quarter for the company, with full-year EPS guidance exceeding analysts’ expectations and a beat of analysts’ EPS estimates.
Is RTX a buy or sell going into earnings? Read our full analysis here, it’s free for active Edge members.
This quarter, the market is expecting RTX’s revenue to grow 7.5% year on year, slowing from the 11.9% increase it recorded in the same quarter last year.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business will stay the course heading into earnings. RTX has a history of exceeding Wall Street’s expectations.
Looking at RTX’s peers in the aerospace and defense segment, some have already reported their Q3 results, giving us a hint as to what we can expect. AAR delivered year-on-year revenue growth of 24.1%, beating analysts’ expectations by 4.3%, and Byrna reported a revenue decline of 45.7%, falling short of estimates by 5.3%. AAR traded down 7.2% following the results while Byrna was up 11.6%.
Read our full analysis of AAR’s results here and Byrna’s results here.
In the last twelve months or so, the market has shifted its attention from one area of macro importance to the next (AI disintermediation and AI capex spending to geopolitical conflict, rates, and whether the economy is on solid footing or not). While some of the aerospace and defense stocks have shown solid performance in this choppy environment, the group has generally underperformed, with share prices down 5.7% on average over the last month. RTX’s stock price was unchanged during the same time and is heading into earnings with an average analyst price target of $227.78 (compared to the current share price of $193.78).
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