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RTX Corporation (RTX), headquartered in Arlington, Virginia, is an aerospace and defense company. Valued at $133.08 billion by market cap, the company offers avionics systems, aviation systems, communications and navigation equipment, interior and exterior aircraft lighting, aircraft seating, environmental control systems, flight control systems, and engine components. RTX serves its customers through its three businesses: Collins Aerospace, Pratt & Whitney, and Raytheon. The defense major is expected to announce its fiscal second-quarter earnings for 2024 before the market opens on Thursday, Jul. 25.
Ahead of the event, analysts expect RTX to report a profit of $1.29 per share on a diluted basis, unchanged from the year-ago quarter. The company has consistently surpassed Wall Street’s EPS estimates in its last four quarterly reports. During the previous quarter, RTX received a $1.2 billion contract to supply Germany with additional Patriot air and missile defense systems.
For fiscal 2024, analysts expect RTX to report EPS of $5.39, up 6.5% from $5.06 in fiscal 2023.
RTX stock has outperformed the S&P 500’s ($SPX) 16.9% gains on a YTD basis, with shares up 20.2% during this period. Similarly, it outshined the S&P 500 Industrial Sector SPDR’s (XLI) 6% gains over the same time frame.
RTX’s overall performance can be attributed to its robust Q1 results and solid guidance for 2024. The company’s sales rose 12% year over year to $19.3 billion, and its adjusted EPS increased 10% over the prior year quarter to $1.34. For 2024, RTX believes its margins will improve, and it expects total sales growth of 14% and adjusted EPS to be between $5.25 and $5.40. The company has a record backlog of more than $202 billion. Meanwhile, it has reduced its free cash flow target in 2025 from $9 billion to $7.5 billion amid an ongoing inspection drive to look for potentially flawed components in its GTF jet engines.
Analysts’ consensus opinion on RTX stock is bullish, with a “Moderate Buy” rating overall. Out of 21 analysts covering the stock, six advise a “Strong Buy” rating, 14 have a “Hold” rating, and one recommends a “Strong Sell.” The average analyst price target for RTX is $101.68, indicating a marginal potential upside from the current levels.
On the date of publication, Dipanjan Banchur did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
