Aerospace and defense company Raytheon (NYSE: RTX) will be reporting earnings this Thursday before market open. Here’s what you need to know.
RTX beat analysts’ revenue expectations last quarter, reporting revenues of $22.08 billion, up 8.7% year on year. It was a strong quarter for the company, with 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 6.2% year on year, slowing from the 9.4% 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 Q2 results, giving us a hint as to what we can expect. Northrop Grumman delivered year-on-year revenue growth of 5.1%, beating analysts’ expectations by 0.5%, and AAR reported revenues up 26.1%, topping estimates by 3.9%.
Read our full analysis of Northrop Grumman’s results here and AAR’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 2.8% on average over the last month. RTX is up 6.6% during the same time and is heading into earnings with an average analyst price target of $215.36 (compared to the current share price of $193.88).
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