RTX Corporation Poised for Impressive Q4 Earnings Report
Company Overview and Anticipated Earnings
Arlington, Virginia-based RTX Corporation (RTX) operates as an aerospace and defense industry leader. The company focuses on advancing aviation, developing smarter defense systems, and driving innovations that will take humanity deeper into space. With a market cap of $154.2 billion, RTX employs more than 185,000 individuals across its Collins Aerospace, Pratt & Whitney, and Raytheon segments.
Predictions for Q4 and Fiscal Year Growth
RTX is set to release its fourth-quarter earnings on Tuesday, Jan. 28. Analysts project a non-GAAP profit of $1.35 per share for Q4, representing a 4.7% increase from last year’s $1.29 per share. Impressively, RTX has exceeded Wall Street’s bottom-line expectations for four consecutive quarters. In the last reported quarter, its adjusted earnings per share (EPS) rose 16% year-over-year to $1.45, surpassing estimates by 9%.
Looking ahead to fiscal 2024, RTX is expected to achieve an adjusted EPS of $5.56—up 9.9% from $5.06 in fiscal 2023. The forecast for 2025 indicates a further growth of 9.2%, reaching $6.07 per share.
Stock Performance and Market Comparison
RTX stock has experienced significant growth, soaring over 33.6% over the past year. This performance outshines the S&P 500 Index’s 27.2% increase and the Industrial Select Sector SPDR Fund’s (XLI) 18.9% gains during the same period.
Strong Quarterly Results and Demand Surge
After announcing solid Q3 results on Oct. 22, RTX’s stock reached its 52-week high, despite a slight dip afterward. The firm reported a 6% year-over-year growth in adjusted sales, totaling an impressive $20.1 billion. Furthermore, organic sales rose 8% from the previous year, amounting to nearly $19 billion. Shareholders benefited from a 6.9% year-over-year increase in adjusted net income, which reached $1.9 billion.
Increased geopolitical tensions worldwide have driven demand for RTX’s defense products. The company’s disciplined expense management has contributed to ongoing earnings growth. By the end of the quarter, RTX’s backlog hit an astonishing $221 billion. Thanks to this sustained momentum, RTX raised its full-year sales and earnings expectations, further strengthening investor confidence.
Analysts’ Ratings and Price Targets
The consensus on RTX stock is moderately bullish, with a general “Moderate Buy” rating. Out of 22 analysts covering the stock, seven recommend a “Strong Buy,” one suggests a “Moderate Buy,” 13 advocate “Hold,” and one issues a “Strong Sell” rating. The mean price target is $132.81, indicating a 16.4% premium over current prices.
On the date of publication, Aditya Sarawgi did not hold (either directly or indirectly) positions in any securities mentioned in this article. All information and data provided in this article are for informational purposes only. For more details, refer to the Barchart Disclosure Policy here.
The views and opinions expressed herein are those of the author and do not necessarily reflect the views of Nasdaq, Inc.
