Preview: RTX's Earnings

RTX RTX will release its quarterly earnings report on Tuesday, 2024-10-22. Here's a brief overview for investors ahead of the announcement.

Analysts anticipate RTX to report an earnings per share (EPS) of $1.34.

The market awaits RTX's announcement, with hopes high for news of surpassing estimates and providing upbeat guidance for the next quarter.

It's important for new investors to understand that guidance can be a significant driver of stock prices.

Historical Earnings Performance

Last quarter the company beat EPS by $0.12, which was followed by a 0.42% increase in the share price the next day.

Here's a look at RTX's past performance and the resulting price change:

Stock Performance

Shares of RTX were trading at $125.92 as of October 18. Over the last 52-week period, shares are up 59.57%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Insights Shared by Analysts on RTX

For investors, staying informed about market sentiments and expectations in the industry is paramount. This analysis provides an exploration of the latest insights on RTX.

The consensus rating for RTX is Neutral, derived from 10 analyst ratings. An average one-year price target of $128.1 implies a potential 1.73% upside.

Peer Ratings Overview

In this comparison, we explore the analyst ratings and average 1-year price targets of Lockheed Martin, GE Aero and General Dynamics, three prominent industry players, offering insights into their relative performance expectations and market positioning.

• The consensus outlook from analysts is an Buy trajectory for Lockheed Martin, with an average 1-year price target of $594.0, indicating a potential 371.73% upside.
• GE Aero received a Outperform consensus from analysts, with an average 1-year price target of $210.5, implying a potential 67.17% upside.
• As per analysts' assessments, General Dynamics is favoring an Outperform trajectory, with an average 1-year price target of $330.1, suggesting a potential 162.15% upside.

Summary of Peers Analysis

The peer analysis summary provides a snapshot of key metrics for Lockheed Martin, GE Aero and General Dynamics, illuminating their respective standings within the industry. These metrics offer valuable insights into their market positions and comparative performance.

Key Takeaway:

RTX ranks in the middle for consensus rating among its peers. It is at the bottom for revenue growth. RTX is at the top for gross profit. RTX is at the bottom for return on equity.

Unveiling the Story Behind RTX

RTX is an aerospace and defense manufacturer formed from the merger of United Technologies and Raytheon, with roughly equal exposure as a supplier to commercial aerospace and to the defense market. The company operates in three segments: Collins Aerospace, a diversified aerospace supplier; Pratt & Whitney, a commercial and military aircraft engine manufacturer; and Raytheon, a defense prime contractor providing a mix of missiles, missile defense systems, sensors, hardware, and communications technology to the military.

RTX's Financial Performance

Market Capitalization: Positioned above industry average, the company's market capitalization underscores its superiority in size, indicative of a strong market presence.

Positive Revenue Trend: Examining RTX's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 7.68% as of 30 June, 2024, showcasing a substantial increase in top-line earnings. As compared to its peers, the revenue growth lags behind its industry peers. The company achieved a growth rate lower than the average among peers in Industrials sector.

Net Margin: RTX's net margin lags behind industry averages, suggesting challenges in maintaining strong profitability. With a net margin of 0.56%, the company may face hurdles in effective cost management.

Return on Equity (ROE): RTX's ROE falls below industry averages, indicating challenges in efficiently using equity capital. With an ROE of 0.19%, the company may face hurdles in generating optimal returns for shareholders.

Return on Assets (ROA): RTX's ROA lags behind industry averages, suggesting challenges in maximizing returns from its assets. With an ROA of 0.07%, the company may face hurdles in achieving optimal financial performance.

Debt Management: With a below-average debt-to-equity ratio of 0.74, RTX adopts a prudent financial strategy, indicating a balanced approach to debt management.

To track all earnings releases for RTX visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.