Raytheon Technologies (NYSE:RTX) fell 2.1% in regular trading Tuesday after the defense contractor missed Q3 revenue estimates and lowered its 2022 guidance.
Results were mixed in that revenue rose 4.9% from a year earlier to $17 billion, but missed Wall Street’s estimate by $250 million. Its adjusted EPS fell 4% from the prior year to $1.21, beating estimates by $0.07.
Raytheon lowered its 2022 revenue guidance to a range of $67 billion to $67.3 billion from $67.75 billion to $68.75 billion, compared with a consensus estimate of $67.66 billion. It also raised low end of its estimate for adjusted EPS to a range of $4.70-$4.80 from $4.60-$4.80, compared with the consensus of $4.69.
Segment Results
Among Raytheon’s business units, strength in commercial aviation offset weakness in defense and space.
Aviation parts supplier Collins Aerospace boosted operating profit by 31% to $630 million as sales climbed by 11% to $5.1 billion. Jet engine maker Pratt & Whitney increased adjusted operating profit by 68% to $318 million on a 14% gain in sales to $5.38 billion.
Raytheon Intelligence & Space saw a 5% decline from a year earlier in adjusted operating profit to $371 million as sales slipped 3% to $3.63 billion. Raytheon Missile & Defense experiened a 15% drop in adjusted operating profit to $416 million, while sales slipped 6% to $3.68 billion.
Raytheon this year has risen 1.1%, contrasting with a 20% decline for the S&P 500 index (SP500).
Seeking Alpha contributor Chetan Woodun has a Hold rating on Raytheon (RTX) on the possibility of higher defense spending worldwide. Contributor Deep Value Ideas rates Raytheon (RTX) as a Buy on its ability to pay dividends.