RTX annual revenue forecast misses estimates, shares slightly down

Investing.com -- RTX Corp. (NYSE:RTX) shares slipped in premarket trading Tuesday after the aerospace and defense company issued an underwhelming guidance for the fiscal 2025 year.

For the fiscal Q4 2024, RTX reported earnings per share (EPS) of $1.54, topping analyst expectations of $1.38.

Revenue came in at $21.62 billion, also above the consensus estimate of $20.53 billion.

The company's Raytheon (NYSE:RTN) segment posted sales of $7.16 billion, up 3.9% year-over-year (YoY), compared to estimates of $6.77 billion.

Collins Aerospace Systems reported sales of $7.54 billion, an increase of 5.9% YoY, beating the $7.33 billion estimate.

Meanwhile, Pratt&Whitney saw its sales surge 18% YoY to $7.57 billion, well above the $7.02 billion projected by analysts.

RTX reported a free cash flow (FCF) for the period of $492 million, an 87% decline year-over-year and below the estimate of $693 million.

"RTX delivered a very strong year of performance in 2024 with 11 percent organic sales growth and 13 percent adjusted EPS growth, including segment margin expansion in all three businesses," said RTX President and CEO Chris Calio.

"We have strong momentum heading into 2025 with a $218 billion backlog and unprecedented demand for our products and solutions. We remain focused on advancing our strategic priorities of executing on our commitments, innovating for growth and harnessing the breadth and scale of RTX, giving us confidence in our 2025 financial outlook."

For fiscal 2025, RTX projects EPS between $6.00 and $6.15, in line with the consensus estimate of $6.08.

Revenue is expected to range from $83 billion to $84 billion, slightly below the consensus of $84.5 billion.

The company anticipates free cash flow between $7 billion and $7.5 billion, compared to the consensus estimate of $7.13 billion.

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