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Raytheon Technologies (RTX) Q2 Earnings Beat, Sales Fall Y/Y
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Raytheon Technologies Corporation (RTX - Free Report) second-quarter 2020 adjusted earnings per share (EPS) of 40 cents outpaced the Zacks Consensus Estimate of 10 cents by 300%.
However, the bottom-line figure declined 67.7% from the year-ago quarter’s $1.24.
Including one-time items, the company reported loss of $2.56 against earnings of $1.37 per share in the year-ago quarter.
The year-over-year deterioration in bottom line is attributable to charges related to the current economic environment primarily attributable to the COVID-19 pandemic.
Raytheon Technologies Corporation Price, Consensus and EPS Surprise
Raytheon Technologies’ second-quarter sales of $14,061 million declined 24.1% on a year-over-year basis. The top line, however, beat the Zacks Consensus Estimate of $13,983 million by 0.6%.
Total costs and expenses increased 46.3% year over year to $14,720 million. The company incurred operating loss of $3,760 millionagainst operating income of $1,386 million in the year-ago quarter.
Segmental Performance
Collins Aerospace: Adjusted sales at this segment declined 35% year over year to $4,298 million in second-quarter 2020 due to commercial sales decline attributable to lower in-flight hours, aircraft fleet utilization and commercial OEM deliveries. Its adjusted operating income came in at $24 million compared with the year-ago quarter’s level of $1,293 million.
Pratt & Whitney: Adjusted sales at this segment declined 30% year over year to $3,607 million due to a significant reduction in shop visits and related spare part sales as well as lower commercial engine deliveries. Its adjusted operating loss was $151million against the year-ago quarter’s operating income of $452 million.
Raytheon Intelligence & Space: This segment recorded second-quarter adjusted sales of $3,314 million and recorded $311 million of adjusted operating profit in the quarter.
Raytheon Missiles & Defense: This unit recorded second-quarter adjusted sales of $3,590 million and $397 million of adjusted operating profit in the quarter.
Financial Update
Raytheon Technologies ended Jun 30, 2020 with cash and cash equivalents of $6,975 million, up from $4,937 million as of Dec 31, 2019.
Long-term debt was $31,210 million, as of Jun 30, 2020, down from $37,701 million as of Dec 31, 2019.
Net cash inflow from operating activities amounted to $1,342 million at the end of second-quarter 2020 compared with $2,769 million in the year-ago period.
Its free cash flow came in at $559 million compared with $2,091 million at the end of second-quarter 2019.
Zacks Rank
Raytheon Technologies currently carries a Zacks Rank #4 (Sell).
Teledyne Technologies (TDY - Free Report) reported second-quarter 2020 adjusted earnings of $2.43 per share, which surpassed the Zacks Consensus Estimate of $2.01 by 20.9%.
Lockheed Martin (LMT - Free Report) reported second-quarter 2020 adjusted earnings of $6.13 per share, which surpassed the Zacks Consensus Estimate of $5.71 by 7.4%.
Hexcel Corporation (HXL - Free Report) reported second-quarter 2020 adjusted earnings of 8 cents per share, which missed the Zacks Consensus Estimate of 20 cents by 60%.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early. See the 5 high-tech stocks now>>
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Raytheon Technologies (RTX) Q2 Earnings Beat, Sales Fall Y/Y
Raytheon Technologies Corporation (RTX - Free Report) second-quarter 2020 adjusted earnings per share (EPS) of 40 cents outpaced the Zacks Consensus Estimate of 10 cents by 300%.
However, the bottom-line figure declined 67.7% from the year-ago quarter’s $1.24.
Including one-time items, the company reported loss of $2.56 against earnings of $1.37 per share in the year-ago quarter.
The year-over-year deterioration in bottom line is attributable to charges related to the current economic environment primarily attributable to the COVID-19 pandemic.
Raytheon Technologies Corporation Price, Consensus and EPS Surprise
Raytheon Technologies Corporation price-consensus-eps-surprise-chart | Raytheon Technologies Corporation Quote
Operational Performance
Raytheon Technologies’ second-quarter sales of $14,061 million declined 24.1% on a year-over-year basis. The top line, however, beat the Zacks Consensus Estimate of $13,983 million by 0.6%.
Total costs and expenses increased 46.3% year over year to $14,720 million. The company incurred operating loss of $3,760 millionagainst operating income of $1,386 million in the year-ago quarter.
Segmental Performance
Collins Aerospace: Adjusted sales at this segment declined 35% year over year to $4,298 million in second-quarter 2020 due to commercial sales decline attributable to lower in-flight hours, aircraft fleet utilization and commercial OEM deliveries. Its adjusted operating income came in at $24 million compared with the year-ago quarter’s level of $1,293 million.
Pratt & Whitney: Adjusted sales at this segment declined 30% year over year to $3,607 million due to a significant reduction in shop visits and related spare part sales as well as lower commercial engine deliveries. Its adjusted operating loss was $151million against the year-ago quarter’s operating income of $452 million.
Raytheon Intelligence & Space: This segment recorded second-quarter adjusted sales of $3,314 million and recorded $311 million of adjusted operating profit in the quarter.
Raytheon Missiles & Defense: This unit recorded second-quarter adjusted sales of $3,590 million and $397 million of adjusted operating profit in the quarter.
Financial Update
Raytheon Technologies ended Jun 30, 2020 with cash and cash equivalents of $6,975 million, up from $4,937 million as of Dec 31, 2019.
Long-term debt was $31,210 million, as of Jun 30, 2020, down from $37,701 million as of Dec 31, 2019.
Net cash inflow from operating activities amounted to $1,342 million at the end of second-quarter 2020 compared with $2,769 million in the year-ago period.
Its free cash flow came in at $559 million compared with $2,091 million at the end of second-quarter 2019.
Zacks Rank
Raytheon Technologies currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Recent Defense Releases
Teledyne Technologies (TDY - Free Report) reported second-quarter 2020 adjusted earnings of $2.43 per share, which surpassed the Zacks Consensus Estimate of $2.01 by 20.9%.
Lockheed Martin (LMT - Free Report) reported second-quarter 2020 adjusted earnings of $6.13 per share, which surpassed the Zacks Consensus Estimate of $5.71 by 7.4%.
Hexcel Corporation (HXL - Free Report) reported second-quarter 2020 adjusted earnings of 8 cents per share, which missed the Zacks Consensus Estimate of 20 cents by 60%.
These Stocks Are Poised to Soar Past the Pandemic
The COVID-19 outbreak has shifted consumer behavior dramatically, and a handful of high-tech companies have stepped up to keep America running. Right now, investors in these companies have a shot at serious profits. For example, Zoom jumped 108.5% in less than 4 months while most other stocks were sinking.
Our research shows that 5 cutting-edge stocks could skyrocket from the exponential increase in demand for “stay at home” technologies. This could be one of the biggest buying opportunities of this decade, especially for those who get in early.
See the 5 high-tech stocks now>>