RTX Earnings Prediction
The chart below shows how RTX performed 10 days before and after its earnings report, based on data from the past quarters. Typically, RTX sees a -2.14% change in stock price 10 days leading up to the earnings, and a -0.03% change 10 days following the report. On the earnings day itself, the stock moves by +1.63%. This data can give you a slight idea of what to expect for the next quarter's release.
RTX Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
21.62B
8.51%
7.64%
Gross Margin
19.59%
-2.63%
-2.44%
Operating Margin
13.02%
8.95%
0.31%
Net Margin
7.21%
-2.44%
-5.63%
EPS
1.10
3.77%
0.92%
No Data Available
RTX Earnings Analysis
RTX Corp Corporation (RTX.N) Earnings Conference Call
Positive
Sales Growth Overview: In 2024, RTX achieved $80.8 billion in adjusted sales, reflecting an 11% organic growth driven by 14% growth in commercial OE, 13% in commercial aftermarket, and 9% in defense sales.
EPS Growth and Profit Expansion: Adjusted EPS increased by 13% year-over-year to $5.73, supported by a 29% rise in segment operating profit and a 180 basis points expansion in segment operating margin.
Free Cash Flow Highlights: Free cash flow for the year totaled $4.5 billion, contributing to a total of over $33 billion returned to shareholders since the merger, including $3.7 billion in 2024.
Backlog Growth and Demand: The backlog reached $218 billion, an 11% increase year-over-year, with a record $93 billion in defense backlog, indicating strong future demand.
Sales and Profit Projections: In 2025, RTX expects adjusted sales between $83 billion and $84 billion, translating to 4% to 6% organic growth, alongside anticipated segment profit growth of 10% to 13% and adjusted EPS of $6 to $6.15.
Negative
Adjusted EPS Analysis: Adjusted EPS from continuing operations was $1.10, which included $0.30 of acquisition accounting adjustments, indicating a significant impact from non-recurring items on overall earnings.
Free Cash Flow Analysis: Free cash flow for Q4 was $492 million, bringing the full year total to $4.5 billion, which included approximately $1.1 billion of powder metal compensation, highlighting ongoing cash flow pressures.
Financial Strain Analysis: The full year included approximately $2.6 billion of impacts from powder metal, legal matters, and the Raytheon contract matter, indicating substantial financial strain from these issues.
Commercial OE Sales Decline: Collins' commercial OE sales for the quarter were down 6% versus the prior year, driven primarily by lower narrow body volume on the 737 MAX, reflecting challenges in the commercial aerospace segment.
Sales Growth Challenges: Raytheon's sales growth was partially offset by the impact from the cybersecurity divestiture and lower volume on air and space defense systems, indicating a negative trend in certain defense segments.
RTX FAQs
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RTX Earning Call Sentiment
Earnings call transcript: RTX Q4 2024 beats expectations, stock steady
RTX.N
0.23%Positive
The earnings call shows strong financial performance with record high revenues, margin expansion, and increased guidance, indicating positive sentiment. However, some concerns exist, such as powder metal costs and potential divestitures. The Q&A section reassures stability in key areas like GTF and backlog, and highlights strong demand. With a positive outlook on shareholder returns and free cash flow, the overall sentiment is positive, suggesting a stock price increase between 2% and 8%.
