Aerospace and defense company Raytheon (NYSE: RTX) will be reporting earnings tomorrow before market open. Here’s what you need to know.
RTX beat analysts’ revenue expectations by 1.4% last quarter, reporting revenues of $20.09 billion, up 49.2% 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’ organic revenue 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 3% year on year to $20.52 billion, slowing from the 10.1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.38 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 missed Wall Street’s revenue estimates twice over the last two years.
Looking at RTX’s peers in the aerospace and defense segment, some have already reported their Q4 results, giving us a hint as to what we can expect. CACI delivered year-on-year revenue growth of 14.5%, beating analysts’ expectations by 2.9%, and AAR reported revenues up 25.8%, topping estimates by 4.9%. CACI traded down 9.3% following the results while AAR was up 8.6%.
Read our full analysis of CACI’s results here and AAR’s results here.
There has been positive sentiment among investors in the aerospace and defense segment, with share prices up 4.9% on average over the last month. RTX is up 9.8% during the same time and is heading into earnings with an average analyst price target of $136.60 (compared to the current share price of $125.31).
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