Raytheon Technologies Posts Q1 Beat, Low End Of Guidance Misses Street Expectations

Raytheon Technologies Corp RTX reported first-quarter FY23 sales growth of 9.5% year-over-year to $17.21 billion, beating the consensus estimate of $16.97 billion.

Adjusted EPS improved 6% Y/Y to $1.22, beating the consensus of $1.13.

Collins Aerospace's sales of $5.58 billion (+16% Y/Y) were driven by a 24% increase in commercial aftermarket, a 12% increase in commercial OE and a 9% increase in military. The adjusted operating margin expanded by 223 bps to 14.3%.

Pratt & Whitney adjusted sales of $5.23 billion (+15% Y/Y) and adjusted operating margin of 8.3%, up by 150 bps.

Raytheon Intelligence & Space's adjusted sales were flat at $3.57 billion and an adjusted operating margin of 9.3%, down by 130 bps.

Raytheon Missiles & Defense adjusted sales totaled $3.67 billion (+4% Y/Y), and the adjusted operating margin was 9.1%, down by 190 bps.

At the end of the quarter, the backlog was $180 billion, of which $109 billion was from commercial aerospace and $71 billion was from defense.

Raytheon's cash used in operating activities for the quarter totaled $863 million billion, compared to cash provided of $476 million a year ago. Free cash outflow was $1.38 billion.

RTX held cash and equivalents of $5.89 billion as of March 31, 2023.

FY23 Outlook Reaffirmed: Raytheon confirmed a sales forecast of $72 billion-$73 billion versus the consensus of $72.43 billion and guided to adjusted EPS of $4.90-$5.05 versus the consensus of $5.01.

The company expects a free cash flow of ~$ 4.8 billion and confirms a share repurchase of at least $3 billion of RTX shares.

RTX Price Action: RTX shares were down 2.05% at $100.41 midday Tuesday.

Photo via Shutterstock.