Raytheon earnings are better than Wall Street expectations.
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Raytheon Technologies reported impressive third-quarter earnings Tuesday and raised its outlook for full-year profit, but the aerospace and defense giant’s quarterly sales were short of expectations.
Shares in Raytheon (ticker: RTX) dipped after the numbers were released but have since moved higher, rising 0.44% in premarket trading. The stock has gained more than 33% in 2021.
The group reported quarterly sales of $16.2 billion, but Wall Street was expecting that number to be higher, at $16.4 billion, according to FactSet. Adjusted earnings were better at $1.26 a share, beating the $1.09 estimated by analysts. Free cash flow was $1.5 billion, in line with expectations.
Raytheon also updated its outlook for the full year, hiking EPS forecasts to a range of $4.10 to $4.20, up from a prior outlook of $3.85 to $4. It expects free cash flow to be $5 billion—at the top end of its previously guided range.
The company’s sales forecast for the year was a weak point, with forecast sales of $64.5 billion sitting at the bottom of the $64.4 billion to $65.4 billion range the company previously guided.
“Our performance this quarter clearly demonstrates our ability to capitalize on the increased demand across our commercial aerospace and defense businesses, and our intense focus on cost reduction and operational execution,” said Greg Hayes, the group’s chairman and CEO, in a statement.
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