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Key Takeaways
- RTX shares surged after the aerospace and defense contractor posted better-than-expected results, helped by a boost in air travel and military spending.
- The aerospace and defense contractor benefited from aftermarket sales to air carriers who put more planes in service to meet higher passenger volumes.
- RTX’s Pratt & Whitney division bounced back after dealing with a 2023 recall and inspection of an engine used in a popular Airbus aircraft.
RTX (RTX) shares surged close to 6% in intraday trading Tuesday after the aerospace and defense contractor posted better-than-expected results, helped by a rise in air travel and military spending.
The company formerly known as Raytheon reported fourth quarter earnings per share (EPS) of $1.29, with revenue up 10% from the year before to $19.9 billion. Both exceeded expectations.
Sales at the Collins Aerospace division were up 14% to $7.12 billion, boosted by a commercial settlement and a jump in demand for aftermarket products as airlines put more planes in the air amid a travel boom.
The Pratt & Whitney engine unit posted a 25% increase in revenue to $6.44 billion, bouncing back after a 2023 recall and inspection of engines used on Airbus A320neo passenger jets because of a “rare condition of powder metal” used to make them.
Revenue at the defense arm of RTX, called Raytheon, gained 3% to $6.89 billion. The group produces AMRAAM rockets and the Patriot missile system.
CEO Greg Hayes said RTX “supported the continued recovery in commercial aerospace and provided critical platforms and advanced technologies to our customers.”
The company anticipates full-year EPS in the range of $5.25 to $5.40, compared to analyst projections of $5.28.
Shares of RTX were 5.8% higher at $89.96 per share as of about noon ET Tuesday. Despite Tuesday’s gains, shares of RTX were down 6.5% year-over-year.
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