Raytheon Q4 results: ‘everything is marching exactly as we expected’

on Jan 24, 2023
  • Raytheon Technologies more than doubled its net income in Q4.
  • CEO Greg Hayes discussed the results and guidance on CNBC.
  • Rraytheon stock is currently up 20% versus late September.

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Shares of Raytheon Technologies Corp (NYSE: RTX) are roughly flat this morning even after the aerospace and defence conglomerate reported a more than 100% year-on-year growth in its fourth-quarter net income.

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Here’s why Raytheon stock is down on Tuesday

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Shareholders are partly being cautious on the revenue that came in slightly short of the Street expectations. But CEO Greg Hayes said on CNBC’s “Squawk on the Street”:

Commercial aerospace markets are about 80% of what they were pre-pandemic. We see that recovery will continue throughout 2023. Our commercial aftermarket was up 15% in Q4. Everything is marching exactly as we had expected.

Raytheon Technologies ended the quarter with $175 billion worth of backlog. Wall Street has a consensus “overweight” rating on this defence stock.

Raytheon Technologies’ guidance for the future

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The stock is “iffy” also on guidance that didn’t invoke a lot of confidence. Raytheon is calling for $72 billion to $73 billion in revenue this year – roughly in line with estimates.

Its outlook for $4.90 to $5.05 of adjusted EPS was, in fact, a bit shy of $5.03 that analysts had anticipated. Still, quoting a 10% increase in defence budget for 2023, CEO Hayes said:

We’re still not producing weapons and systems fast enough to support our allies. As I’m out talking to different commands, everybody is saying we need more. It’s a very small subset of the Republicans that think we’re spending too much.

Raytheon stock is up about 20% versus late September at writing.

Raytheon Technologies’ Q4 financial highlights

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  • Earned $1.42 billion versus the year-ago $686 million
  • Per-share earnings also shot up from 46 cents to 96 cents
  • Adjusted EPS printed at $1.27 as per the press release
  • Sales climbed 6.0% year-on-year to $18.09 billion
  • Consensus was $1.24 a share on $18.2 billion in revenue

Also on Tuesday, Raytheon Technologies said it will realign into three business segments: Raytheon, Pratt & Whitney, and Collins Aerospace. Streamlining will complete in the back of 2023, it added.


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