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RTX to Report Q3 Earnings: What's in Store for the Stock?
ZACKS· 2025-10-16 14:01
Core Viewpoint - RTX Corporation is expected to report its third-quarter 2025 results on October 21, with a prior earnings surprise of 7.59% in the last quarter [1] Factors Influencing Q3 Results - Rising aftermarket demand for commercial aircraft due to increased flight hours and growth in domestic and international aviation traffic is likely to enhance RTX's commercial aftermarket sales [2] - Increased commercial air passenger travel rates are expected to boost demand for commercial jet engines, positively impacting RTX's original equipment manufacturer (OEM) sales, particularly for GTF units [3] - Strong sales momentum in both commercial OEM and aftermarket channels is anticipated to benefit the Pratt & Whitney and Collins Aerospace segments [4] - Solid sales of military engines for programs like the F-35 are expected to contribute positively to Pratt & Whitney's performance [4] - Higher sales volume for integrated air and missile defense systems, driven by geopolitical tensions, is likely to enhance revenues for the Raytheon unit [5] Financial Expectations - The Zacks Consensus Estimate for earnings is $1.42 per share, reflecting a year-over-year decline of 2.1%, while revenues are estimated at $21.48 billion, indicating a year-over-year increase of 6.9% [8] - Despite higher sales volume, the impact of increased tariffs may offset some gains, although cash flow is expected to improve following recovery from prior disruptions [6][10] Earnings Prediction - The company's Earnings ESP is +1.53%, suggesting a strong likelihood of an earnings beat, supported by a Zacks Rank of 3 [11][12]