Company Performance - RTX Corp stock has increased by 65% from $70 in early January 2021 to around $115, outperforming the S&P 500's 45% increase during the same period [2] - In Q2 2024, RTX reported revenue of $19.7 billion, an 8% year-over-year increase, with adjusted earnings of $1.41 per share, exceeding consensus estimates [3][5] - The revenue growth was driven by a 10% increase in Collins Aerospace sales and a 19% rise in Pratt & Whitney revenue, while Raytheon sales declined by 3% due to divestiture [5] Market Outlook - RTX has raised its full-year sales outlook to $78.75 – $79.5 billion and adjusted earnings per share guidance to $5.35 – $5.45, indicating positive investor sentiment [6] - Despite the positive outlook, RTX stock is currently trading at a valuation multiple of 21x expected earnings of $5.40 per share in 2024, which is higher than its historical average P/E ratio of 18x [4][6] Comparative Analysis - In recent stock performance, RTX has outperformed General Electric, with RTX rising 9% in a week compared to GE's 3% increase [3] - The stock's performance has been inconsistent, with returns of 23% in 2021, 19% in 2022, and -17% in 2023, indicating underperformance relative to the S&P 500 in certain years [2]

Core Insights - Raytheon (NYSE: RTX) stock has reached an all-time high of $113.47, with significant price increases benefiting certain politicians, notably Markwayne Mullin, a member of the U.S. Armed Services Committee [1][10][17] - The stock has risen over 60% since Mullin's purchase on October 3, 2023, when the price was $70.58 [10][15] Stock Performance - Raytheon stock has increased by 8% on the day of reporting [2] - The stock has advanced 12.67% monthly and gained 33.87% year-to-date [12] Political Involvement - Markwayne Mullin's investment in Raytheon is part of a broader trend of politicians investing in defense stocks, coinciding with significant military-focused foreign aid legislation [11] - Mullin is also involved in investments in other companies, including Badger Meter (NYSE: BMI), Valero Energy (NYSE: VLO), and Meta Platforms (NASDAQ: META) [7]

Sales Performance - Net sales for the quarter ended June 30, 2024, increased by $1.9 billion to $19.721 billion compared to $18.315 billion in the same quarter of 2023, driven by higher sales at Pratt & Whitney, Collins, and Raytheon[168]. - For the six months ended June 30, 2024, net sales rose by $4.0 billion to $39.026 billion from $35.529 billion in the same period of 2023, primarily due to increases at Pratt & Whitney and Collins[168]. - For the quarter ended June 30, 2024, the consolidated net sales were $39.026 billion, an increase from $35.529 billion in the same quarter of 2023, representing a growth of approximately 7%[180]. - The consolidated net sales for the six months ended June 30, 2024, were $26.198 billion, compared to $24.198 billion in the same period of 2023, reflecting a growth of approximately 8%[182]. - The total business segment sales for the quarter ended June 30, 2024, were $39.026 billion, compared to $35.529 billion in the same quarter of 2023, indicating a growth of approximately 10%[180]. Product Sales and Costs - Net products sales increased by $1.2 billion in the quarter ended June 30, 2024, with Pratt & Whitney contributing $0.7 billion, Collins $0.4 billion, and Raytheon $0.1 billion[169]. - Net products cost of sales increased by $1.5 billion in the quarter ended June 30, 2024, driven by higher costs at Pratt & Whitney, Raytheon, and Collins[175]. Government Sales - The U.S. government accounted for $16.179 billion, or 41.5%, of total net sales in the six months ended June 30, 2024, compared to $15.515 billion, or 43.7%, in the same period of 2023[172]. Research and Development - Research and development expenses remained consistent year-over-year, with a $0.1 billion increase in customer-funded R&D for the six months ended June 30, 2024, primarily due to higher expenses at Collins and Pratt & Whitney[177]. Legal and Other Expenses - The decrease in Other income (expense), net for the quarter ended June 30, 2024, was $0.9 billion, primarily due to a charge related to the Expected Resolution of Certain Legal Matters[179]. - The company reported a charge of $0.9 billion related to legal matters, impacting the overall financial performance for the quarter ended June 30, 2024[179]. Cash Flow and Debt - Net cash flows provided by operating activities for the six months ended June 30, 2024, were $3,075 million, a significant increase from $(144) million in the same period of 2023[303]. - Net cash flows used in investing activities for the six months ended June 30, 2024, were $(40) million, compared to $(1,202) million in the same period of 2023[305]. - Net cash flows used in financing activities for the six months ended June 30, 2024, were $(3,591) million, a decrease from $468 million in the same period of 2023[306]. - Total debt as of June 30, 2024, was $42,151 million, down from $43,827 million on December 31, 2023[300]. - Total equity as of June 30, 2024, was $60,650 million, compared to $61,410 million on December 31, 2023[300]. - The total debt to total capitalization ratio improved to 41% as of June 30, 2024, from 42% at the end of 2023[300]. - The company made repayments of long-term debt totaling $1,700 million during the six months ended June 30, 2024[302]. Dividends - The company declared a dividend of $0.63 per share on June 3, 2024, payable on September 5, 2024[306]. Geopolitical Risks - The defense operations are influenced by U.S. Department of Defense budget levels and geopolitical risks, which may impact sales and operations[160]. - The company continues to monitor potential impacts from geopolitical tensions, particularly in the Middle East, but has reported minimal effects on operations to date[164]. Segment Performance - Collins Aerospace reported sales of $9.860 billion for the quarter ended June 30, 2024, compared to $9.053 billion in the same quarter of 2023, reflecting an increase of approximately 9%[180]. - Pratt & Whitney's sales for the quarter ended June 30, 2024, were $7.806 billion, up from $6.251 billion in the same quarter of 2023, marking an increase of about 25%[180]. - The total defense bookings for Collins in the quarter ended June 30, 2024, included $1.9 billion for the U.S. Air Force's next-generation Survivable Airborne Operations Center[287]. Other Operating Profit - The increase in Other operating profit for the six months ended June 30, 2024, was $0.2 billion, reflecting the absence of a $181 million charge related to a customer insolvency in the prior year[290].

Key Takeaways RTX, which consists of defense giant Raytheon along with aerospace manufacturers Pratt & Whitney and Collins Aerospace, reported an 8% year-over-year increase in sales to $19.72 billion. RTX said that it was lifting its projections for its full-year performance, with adjusted sales increasing to a range of $78.75 billion to $79.5 billion from $78 billion to $79 billion. The company now also projects full-year adjusted earnings per share (EPS) from $5.35 to $5.45, up from the previous range of ...

RTX Corporation's (RTX) second-quarter 2024 adjusted earnings per share (EPS) of $1.41 beat the Zacks Consensus Estimate of $1.29 by 9.3%. The bottom line also improved 9.3% from the year-ago quarter's level of $1.29. Including one-time items, the company reported GAAP earnings of 8 cents per share compared with 90 cents in the prior-year quarter. The year-over-year deterioration can be attributed to higher costs and expenses, along with higher other expenses, net. Operational Performance RTX's second-quart ...

RTX Corporation (NYSE:RTX) Q2 2024 Earnings Conference Call July 25, 2024 8:00 AM ET Company Participants Chris Calio - President and CEO Neil Mitchill - CFO Nathan Ware - VP of IR Conference Call Participants Peter Arment - Baird Robert Stallard - Vertical Research Myles Walton - Wolfe Research Sheila Kahyaoglu - Jefferies Doug Harned - Bernstein Samantha Stiroh - Bank of America Seth Seifman - JPMorgan Kristine Liwag - Morgan Stanley Cai von Rumohr - TD Cowen Jason Gursky - Citi Matt Akers - Wells Fargo D ...

RTX (RTX) reported $19.72 billion in revenue for the quarter ended June 2024, representing a year-over-year increase of 7.7%. EPS of $1.41 for the same period compares to $1.29 a year ago. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. Here is how RTX performed in the just reported quarter in terms of the metrics most ...

This quarterly report represents an earnings surprise of 9.30%. A quarter ago, it was expected that this an aerospace and defense company would post earnings of $1.23 per share when it actually produced earnings of $1.34, delivering a surprise of 8.94%. RTX, which belongs to the Zacks Aerospace - Defense industry, posted revenues of $19.72 billion for the quarter ended June 2024, surpassing the Zacks Consensus Estimate by 2.15%. This compares to year-ago revenues of $18.32 billion. The company has topped co ...

RTX delivers solid operational performance and 8% sales growth; Increases 2024 outlook for adjusted sales* and adjusted EPS*, revises free cash flow* ARLINGTON, Va., July 25, 2024 – RTX (NYSE: RTX) reported second quarter 2024 results. Exhibit 99 Media Contact 202.384.2474 Investor Contact 781.522.5123 RTX Reports Q2 2024 Results Second quarter 2024 Updates outlook for full year 2024 "RTX delivered strong operational performance in the second quarter, with 10 percent organic sales* growth, adjusted margin* ...

Earnings growth captivates almost everyone, from a company's top brass to research analysts. Yet, earnings acceleration works better when lifting the stock price. Studies have shown that most successful stocks have seen an acceleration in earnings before an uptick in their price. Earnings acceleration is the incremental growth in a company's earnings per share (EPS). In other words, if a company's quarter-over-quarter earnings growth rate increases within a stipulated time frame, it can be called earnings a ...