Raytheon Technologies (NYSE:RTX)
Raytheon Technologies (NYSE:RTX) had a decline of 2.1% during Tuesday’s regular trading session as the military contractor missed sales projections for the third quarter and dropped its outlook for 2022. As a result, Raytheon stock gained this morning.
The sales increased 4.9% from the previous year to $17 billion, although it fell short of the projection provided by Wall Street by $250 million. The results were mixed. Its adjusted earnings per share came in at $1.21, which was 4% lower than the preceding year but still topped expectations by $0.07.
The revenue projection that Raytheon provided for 2022 was reduced, going from a range of $67.75 billion to $68.75 billion to a range of $67 billion to $67.3 billion. This is in comparison to the consensus expectation of $67.66 billion. In addition, it increased the low end of its projection for adjusted EPS to a range of $4.70-$4.80, up from $4.60-$4.80; this is in comparison to the industry average of $4.69.
Segment Results
Within Raytheon’s many business areas, Raytheon stock strengths in commercial aviation more than made up for its space and military deficiencies.
Collins Aerospace, a provider of aviation components, increased its operating profit by 31% to $630 million while simultaneously seeing sales increase by 11% to $5.1 billion. On the back of a 14% growth in revenue to $5.38 billion, jet engine manufacturer Pratt & Whitney saw a significant improvement in its adjusted operating profit, which jumped by 68% to $318 million.
The adjusted operating profit for Raytheon Intelligence & Space came in at $371 million, a 5% decrease from the previous year, while revenues decreased by 3%, coming in at $3.63 billion. The adjusted operating profit for Raytheon Missile & Defense fell by 15% to $416 million, while the company’s revenue fell by 6% to $3.68 billion during the same period.
The S&P 500 index has fallen by 20% this year, while Raytheon stock price has increased by 1.1%. (SP500).
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Following a revenue shortfall and a worse sales expectation for Q3, Raytheon stock has fallen.
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Author Shariq Khan 
