Raytheon Stock Falls 3.3% after Profit Tops Expectations but Sales Missed

Dow Jones2022-07-26

Shares of Raytheon Technologies Corp. $(RTX)$ fell 3.3% in premarket trading Tuesday, after the aerospace and defense company reported second-quarter profit that beat expectations but sales that came up short, while confirming the full-year outlook. Net income rose to $1.30 billion, or 88 cents a share, from $1.03 billion, or 68 cents a share, in the year-ago period.

Excluding nonrecurring items, adjusted earnings per share of $1.16 beat the FactSet consensus of $1.12. Sales grew 2.7% to $16.31 billion, below the FactSet consensus of $16.66 billion, as the company's Pratt & Whitney business beat expectations while its Collins Aerospace Systems, Raytheon Intelligence & Space and Raytheon Missiles & Defense businesses missed.

The company affirmed its 2022 guidance ranges for adjusted EPS of $4.60 to $4.80 and for sales of $67.75 billion to $68.75 billion.

"Looking ahead, while we expect the global supply chain environment, labor availability and inflation will remain challenging near term, we are actively engaged with our customers and suppliers to meet demand and remain cost competitive," said Chief Executive Greg Hayes.

The stock has rallied 9.9% year to date through Monday, while the S&P 500 has dropped 16.8%.

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