RTX Surges on ‘Historic’ Demand
RTX Corp, formerly known as Raytheon (RTX:US), saw its stock rally nearly 9% on Tuesday after the company reported better-than-expected results for its third quarter.
Adjusted earnings per share (EPS) for Q3 came in at $1.25, which exceeded the average analyst estimate of $1.21.When it comes to sales, RTX reported $19 billion, which is also above the estimated $18.61 billion.
RTX attributed the increase in sales to an unprecedented level of demand in both its commercial aerospace and defense sectors.
Their Collins Aerospace Systems division posted sales of $6.63 billion, surpassing the consensus of $5.96 billion. Pratt & Whitney, another division of RTX, reported sales of $6.63 billion as well, which exceeded the average analyst estimate of $6.06 billion.
In terms of free cash flow, the company generated $2.75 billion, significantly outperforming the estimated $1.92 billion.
"We have made significant progress on our assessment of the Pratt & Whitney powder metal manufacturing matter and expect the financial impact to be in line with the previously disclosed charge," said RTX Chairman and CEO Greg Hayes.
"We are now focused on executing on our fleet management plans and are working relentlessly to mitigate further disruption to our customers. We do not expect any significant future incremental impact as a result of these fleet management plans."
The stock was also boosted by the new $10 billion stock buyback program.
Over the course of the summer, Congressman Daniel Goldman reported a sale worth $50,000 - $100,000 of RTX shares. The trade took place on July 12, when the stock closed at $96.82.
Following Tuesday’s rally, RTX shares were seen trading at around $80 apiece.
