Aerospace and defense giant Raytheon Technologies (NYSE:RTX) is set to announce its earnings this Tuesday before the market opens, and anticipation is building around the results.
In the previous quarter, Raytheon exceeded revenue expectations by 5.4%, reporting $22.48 billion in revenues, which marked an impressive 11.9% year-on-year increase. The company’s strong performance included notable beats in both organic revenue and EBITDA estimates, showcasing its robust business model even amid economic challenges.
For the upcoming earnings report, analysts anticipate a revenue growth of 4.7% year-on-year, projecting revenues to hit $22.65 billion. This marks a deceleration from the 9.1% growth seen in the corresponding quarter last year. Additionally, adjusted earnings per share are expected to be $1.47.
Recent assessments from analysts have largely reaffirmed their estimates over the past month, indicating confidence in Raytheon’s ability to maintain its performance heading into earnings. Historically, Raytheon has consistently surpassed Wall Street’s revenue estimates, achieving an average beat of 3.4% over the past two years.
In looking at the broader aerospace and defense landscape, competitors such as CACI and AAR have begun reporting their fourth-quarter results, providing some insight into industry trends. CACI reported a year-on-year revenue growth of 5.7%, though it fell short of expectations by 2.4%. In contrast, AAR delivered a stronger performance, with a 15.9% increase in revenues, exceeding analyst forecasts by 4.4%. Following their announcements, CACI shares rose by 3.6%, while AAR experienced a gain of 2.1%.
Overall, there has been a positive sentiment within the aerospace and defense sector, with average share prices climbing 9.2% in the past month. Raytheon has seen a 6.1% increase in its stock during this period, and analysts have set an average price target of $202.83, compared to its current trading price of $195.63.
As the earnings release approaches, investors continue to focus on Raytheon’s ability to sustain its growth and navigate a competitive market. With a strong track record and optimistic market conditions in the aerospace and defense sector, Raytheon appears poised for potential continued success.