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What's in Store for Raytheon Technologies (RTX) in Q4 Earnings?
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Raytheon Technologies Corp. (RTX - Free Report) is set to release fourth-quarter 2021 results on Jan 25, before market open.
The company delivered an earnings surprise of 7.14% in the last reported quarter. Moreover, Raytheon delivered an earnings surprise of 9.06% in the last four quarters, on average.
Factors to Note
The merger between legacy missile-maker Raytheon Company with multinational conglomerate United Technologies, which resulted in the formation of Raytheon Technologies, was completed in April 2021. Consequently, Raytheon Technologies’ fourth-quarter results are expected to benefit from the resultant incremental merger synergies. Also, incremental cost synergies from the acquisition of Rockwell Collins are anticipated to bolster the company’s soon-to-be-reported quarterly results.
Raytheon Technologies Corporation Price and EPS Surprise
A gradual improvement in global air travel has led to a modest recovery of the commercial aerospace industry over the past couple of quarters, which is likely to have boosted the company’s commercial OEM as well as aftermarket sales in the fourth quarter.
However, supply chain pressure and headwinds related to the delivery of original equipment for 787 jets might have partially impacted the sales performance of the Collins business unit in the soon-to-be-reported quarter.
Raytheon’s relentless cost reduction initiatives along with strong operational performance are expected to have benefited its fourth-quarter earnings.
Q4 Expectations
The Zacks Consensus Estimate for Raytheon Technologies’ earnings is pegged at $1.01 on revenues of $17.22 billion, indicating 36.5% and 4.9% improvement from the respective year-ago quarter numbers.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Raytheon Technologies this time around. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for an earnings beat. This is not the case here, as given below
Earnings ESP: Raytheon Technologies has an Earnings ESP of +7.14%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #4 (Sell).
Here are a few defense companies you may want to consider, as these have the right combination of elements to post an earnings beat this season:
The Boeing Company (BA - Free Report) has an Earnings ESP of +61.40% and a Zacks Rank #3. BA has a four-quarter average negative earnings surprise of 219.73%.
The Zacks Consensus Estimate for Boeing’s fourth quarter is pegged at a loss of 14 cents, reflecting a decline from earnings of 2 cents 30 days ago. BA boasts a long-term earnings growth rate of 4%.
Triumph Group (TGI - Free Report) has an Earnings ESP of +1.01% and a Zacks Rank #3.
TGI delivered a four-quarter average earnings surprise of 101.89%. The Zacks Consensus Estimate for Triumph Group’s fourth-quarter earnings, pegged at 20 cents, has deteriorated 9.1% over the past 30 days. TGI boasts a long-term earnings growth rate of 2.6%.
Textron (TXT - Free Report) has an Earnings ESP of +7.66% and a Zacks Rank #3. TXT delivered a four-quarter average earnings surprise of 27.89%.
The Zacks Consensus Estimate for Textron’s fourth-quarter earnings, pegged at 97 cents, has remained unchanged over the past 30 days. TXT boasts a long-term earnings growth rate of 28.3%.
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What's in Store for Raytheon Technologies (RTX) in Q4 Earnings?
Raytheon Technologies Corp. (RTX - Free Report) is set to release fourth-quarter 2021 results on Jan 25, before market open.
The company delivered an earnings surprise of 7.14% in the last reported quarter. Moreover, Raytheon delivered an earnings surprise of 9.06% in the last four quarters, on average.
Factors to Note
The merger between legacy missile-maker Raytheon Company with multinational conglomerate United Technologies, which resulted in the formation of Raytheon Technologies, was completed in April 2021. Consequently, Raytheon Technologies’ fourth-quarter results are expected to benefit from the resultant incremental merger synergies. Also, incremental cost synergies from the acquisition of Rockwell Collins are anticipated to bolster the company’s soon-to-be-reported quarterly results.
Raytheon Technologies Corporation Price and EPS Surprise
Raytheon Technologies Corporation price-eps-surprise | Raytheon Technologies Corporation Quote
A gradual improvement in global air travel has led to a modest recovery of the commercial aerospace industry over the past couple of quarters, which is likely to have boosted the company’s commercial OEM as well as aftermarket sales in the fourth quarter.
However, supply chain pressure and headwinds related to the delivery of original equipment for 787 jets might have partially impacted the sales performance of the Collins business unit in the soon-to-be-reported quarter.
Raytheon’s relentless cost reduction initiatives along with strong operational performance are expected to have benefited its fourth-quarter earnings.
Q4 Expectations
The Zacks Consensus Estimate for Raytheon Technologies’ earnings is pegged at $1.01 on revenues of $17.22 billion, indicating 36.5% and 4.9% improvement from the respective year-ago quarter numbers.
Earnings Whispers
Our proven model does not conclusively predict an earnings beat for Raytheon Technologies this time around. This is because a stock needs to have both a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for an earnings beat. This is not the case here, as given below
Earnings ESP: Raytheon Technologies has an Earnings ESP of +7.14%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Zacks Rank: The company currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank stocks here.
Stocks to Consider
Here are a few defense companies you may want to consider, as these have the right combination of elements to post an earnings beat this season:
The Boeing Company (BA - Free Report) has an Earnings ESP of +61.40% and a Zacks Rank #3. BA has a four-quarter average negative earnings surprise of 219.73%.
The Zacks Consensus Estimate for Boeing’s fourth quarter is pegged at a loss of 14 cents, reflecting a decline from earnings of 2 cents 30 days ago. BA boasts a long-term earnings growth rate of 4%.
Triumph Group (TGI - Free Report) has an Earnings ESP of +1.01% and a Zacks Rank #3.
TGI delivered a four-quarter average earnings surprise of 101.89%. The Zacks Consensus Estimate for Triumph Group’s fourth-quarter earnings, pegged at 20 cents, has deteriorated 9.1% over the past 30 days. TGI boasts a long-term earnings growth rate of 2.6%.
Textron (TXT - Free Report) has an Earnings ESP of +7.66% and a Zacks Rank #3. TXT delivered a four-quarter average earnings surprise of 27.89%.
The Zacks Consensus Estimate for Textron’s fourth-quarter earnings, pegged at 97 cents, has remained unchanged over the past 30 days. TXT boasts a long-term earnings growth rate of 28.3%.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.