Shares of Raytheon Technologies (RTX) gained in trading after the aerospace and defense company reported robust Q2 results and raised its FY24 forecast. The company’s adjusted earnings per share came in at $1.41, up 9% year-over-year, surpassing analysts’ consensus estimate of $1.29 per share.
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RTX’s Q2 Revenue Breakdown
Sales increased by 8% year-over-year, with revenue reaching $19.7 billion in the second quarter. This figure exceeded analysts’ expectations of $19.3 billion. The company’s revenue growth was driven by its strong aerospace sector, which saw Q2 revenues of around $7 billion—a 10% increase from the previous year—thanks to higher commercial sales. Aerospace revenues accounted for more than 30% of RTX’s total Q2 revenues.
The increase in commercial sales is due to airlines using older aircraft to meet the growing travel demand caused by a shortage of new jets. This situation has boosted RTX’s aftermarket business. RTX’s Collins Aerospace division provides integrated solutions for passenger processing, airport operations, and baggage management.
RTX’s Dividend
The company’s Board of Directors declared a quarterly dividend of $0.63 per share, payable on September 5 to shareholders of record at the close of business on August 16, 2024.
RTX has paid cash dividends on its common stock every year since 1936.
RTX’s FY24 Outlook
Looking forward, management raised its FY24 outlook and now expects adjusted sales between $78.75 and $79.5 billion, up from its prior forecast of $78 billion to $79 billion. Adjusted earnings per share for FY24 are likely to be in the range of $5.35 to $5.45, compared to its earlier outlook of $5.25 to $5.40 per share.
Is RTX a Good Stock to Buy?
Analysts remain sidelined about RTX stock, with a Hold consensus rating based on four Buys, eight Holds, and one Sell. Over the past year, RTX has increased by more than 30%, and the average RTX price target of $107.54 implies a downside potential of 5.4% from current levels. These analyst ratings are likely to change following RTX’s results today.
