Raytheon Technologies Corp (RTX) on Tuesday revised up its full-year earnings forecast, while its second-quarter results outstripped analyst estimates, supported by stronger demand for its commercial engines, spare parts and aftermarket services.
Net revenue went up 13% year-on-year to $15.88 billion during the second quarter, while exceeding market expectations.
On an adjusted basis, revenue at Raytheon’s Collins Aerospace and Pratt & Whitney divisions went up 6% and 19% year-on-year respectively, the company said.
Raytheon revised up the lower end of its fiscal year revenue forecast to $64.4 billion from $63.9 billion previously. At the same time, the upper end of the revenue forecast still remains at $65.4 billion.
Earnings per share, which exclude special items, were reported at $1.03 during the second quarter ended on June 30th, a figure which compares with a median analyst estimate of $0.93 per share.
Raytheon also said it now projected full-year earnings within the range of $3.85 and $4.00 per share, a revision up from a previously expected range of $3.50 and $3.70 per share.
“What really happened in the second quarter is airlines aggressively got back into the business of making sure their fleets were ready for this summer travel season,” Neil Mitchill, Raytheon’s Chief Financial Officer, was quoted as saying by Reuters.
Raytheon shares closed higher for a second consecutive trading session in New York on Tuesday. It has also been the sharpest single-session gain since July 20th. The stock went up 2.64% ($2.27) to $88.22, after touching an intraday high at $89.46. The latter has been a price level not seen since June 15th ($89.79).
Shares of Raytheon Technologies Corp have risen 23.37% so far in 2021 compared with a 17.18% gain for the benchmark index, S&P 500 (SPX).
In 2020, Raytheon Technologies Corp’s stock went down 19.04%, thus, it underperformed the S&P 500, which registered a 16.26% gain.
Analyst stock price forecast and recommendation
According to TipRanks, at least 8 out of 9 surveyed investment analysts had rated Raytheon Technologies Corp’s stock as “Buy”, while 1 – as “Hold”. The median price target on the stock stands at $98.75.