Why Is RTX (RTX) Up 1.7% Since Last Earnings Report?

Core Viewpoint - RTX Corporation reported strong fourth-quarter earnings, surpassing estimates and showing year-over-year growth in both earnings and sales, indicating positive operational performance and growth potential for the upcoming year [2][4][5]. Financial Performance - The fourth-quarter adjusted EPS was $1.54, exceeding the Zacks Consensus Estimate of $1.37 by 12.4% and improving 19.4% from $1.29 in the previous year [2][3]. - Total sales for the fourth quarter reached $21.62 billion, surpassing the consensus estimate of $20.56 billion by 5.2% and increasing 8.5% from $19.93 billion in the same quarter of the previous year [4][5]. - For the full year 2024, adjusted EPS was reported at $5.73, exceeding the consensus estimate of $5.56 and improving 13% from $5.06 in the prior year [3]. Segment Performance - Collins Aerospace reported sales of $7.54 billion, up 6% year over year, driven by higher commercial aftermarket sales and increased defense sales [7]. - Pratt & Whitney's sales reached $7.57 billion, reflecting an 18% increase from the previous year, attributed to growth in commercial aftermarket and military sales [8][9]. - Raytheon recorded sales of $7.16 billion, a 4% increase year over year, primarily due to higher volumes in defense systems [10]. Financial Update - As of December 31, 2024, RTX had cash and cash equivalents of $5.58 billion, down from $6.59 billion a year earlier, while long-term debt decreased to $38.73 billion from $42.36 billion [11]. - Net cash flow from operating activities was $7.16 billion, compared to $7.88 billion at the end of 2023, with free cash outflow totaling $4.53 billion [11]. Guidance - For 2025, RTX expects adjusted EPS to be in the range of $6.00-$6.15, with the Zacks Consensus Estimate at $6.06 [12]. - Projected sales for 2025 are expected to be between $83-$84 billion, with the consensus estimate at $84.08 billion [12]. - RTX anticipates generating free cash flow of $7.0-$7.5 billion for 2025 [13]. Market Sentiment - Recent estimates for RTX have shown a downward trend, although the magnitude of revisions has been net zero [14]. - The stock currently holds a Zacks Rank 2 (Buy), indicating expectations for above-average returns in the coming months [16].