Raytheon Technologies Corp. (NYSE: RTX) reported its first-quarter financial results before the markets opened on Thursday. The aerospace and defense company said that it had $1.78 in earnings per share (EPS) and $18.2 billion in revenue, which is better than the consensus estimates of $1.22 in EPS or revenue of $17.34 billion. The same period of last year reportedly had EPS of $1.91 and $18.36 billion in revenue.
During the most recent quarter, net sales were down 1% over the prior year, including flat organic sales and one point of foreign exchange headwind. Sales at Pratt and Whitney were up 11% over the prior year, with commercial aftermarket sales up 4%. Sales at Collins Aerospace were down 1% year over year, with commercial aftermarket sales up 3%.
Considering the impact and uncertainty surrounding the COVID-19 pandemic, Raytheon is not providing guidance for the 2020 full year. The company said that it would revisit providing guidance in the next earnings report. Consensus estimates are calling for $3.49 in EPS and $66.41 billion in revenue for the full year.
On April 3, 2020, Raytheon Technologies successfully completed the separation of Otis and Carrier and the merger with Raytheon Company. Following these transactions, Raytheon Technologies had a cash balance of approximately $8.5 billion and a net debt position of roughly $25 billion.
Greg Hayes, Raytheon Technologies CEO, commented:
Looking ahead, the merits and strategic rationale of the merger are clear. Raytheon Technologies has a diversified portfolio of industry-leading technologies across commercial aerospace and defense with solid positions on key platforms. We have a strong balance sheet, ample liquidity, and are well positioned to deliver value for our shareowners and customers over the long term. We are also making the right moves for the business by taking out costs and making prudent capital allocation decisions to ensure we maintain flexibility and emerge from this crisis strong.
Raytheon stock traded down fractionally early Thursday to $57.92, in a 52-week range of $40.70 to $93.45. The consensus price target is $75.72.
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