RTX Corporation (RTX -0.48%), a leading player in aerospace and defense, released its Q1 2024 earnings results on April 23, showcasing impressive performance against analysts' expectations.
The company reported an adjusted earnings per share (EPS) of $1.34, outperforming the consensus estimate of $1.23, and marking a 10% increase from the prior year's $1.22 adjusted EPS. Revenue reached $19.3 billion, significantly exceeding the forecast of $17.277 billion and reflecting a 12% year-over-year increase. These results underscore RTX's ability to sustain growth momentum in challenging market conditions.
| Metric | 2024 Result | Analyst Estimate | 2023 Result | Change (YOY) |
|---|---|---|---|---|
| Earnings per share (EPS) | $1.34 | $1.23 | $1.22 | 10% |
| Revenue (in billions) | $19.3 | $17.277 | $17.214 | 12% |
| Backlog (in billions) | $202 | N/A | N/A | N/A |
| Free cash flow (in millions) | ($125) | N/A | ($1,383) | N/A |
Company overview
RTX Corporation -- formerly Raytheon Technologies -- is a global powerhouse in aerospace and defense, designing and manufacturing products for commercial, military, and international customers. With a portfolio that includes Collins Aerospace, Pratt & Whitney, and Raytheon, RTX plays a key role in the air travel and national defense arenas.
The company's recent performance reflects success in capturing government contracts, enhancing international operations, and maintaining a robust supply chain. RTX also continues to press forward with its research and development to maintain a competitive edge.
Quarter highlights
The first quarter of 2024 saw RTX achieving significant sales growth across its segments. Collins Aerospace and Pratt & Whitney displayed impressive sales increases of 9% and 23%, respectively, fueled by rising demand in commercial aerospace and military markets. Meanwhile, Raytheon's 6% sales growth highlights its stronghold in air and land defense systems.
A highlight of the quarter was the announcement of a record $202 billion backlog, a testament to RTX's secured future revenue streams and its strategic positioning to capitalize on booming aerospace and defense markets. RTX also completed the divestiture of its Cybersecurity, Intelligence, and Services business for $1.3 billion.
Another key accomplishment was navigating the complex global supply chain environment to ensure operational continuity, despite facing a free cash outflow. This resilience underscores RTX's adeptness in managing its expansive production and delivery schedules amid unforeseen challenges.
The reaffirmation of the full-year 2024 outlook, with sales projected between $78.0 to $79.0 billion and adjusted EPS in the range of $5.25 to $5.40, signals management's confidence in sustaining growth momentum and delivering shareholder value.
Looking ahead
Management remains optimistic about RTX Corp's growth trajectory, backed by a strong backlog and robust demand across its business segments. Investors should monitor the company's ability to convert its record backlog into revenue, alongside its strategic initiatives aimed at innovation and market expansion.
Furthermore, RTX's adept handling of the supply chain and strategic divestitures to focus on core areas presents a solid case for sustained operational excellence and financial health in the quarters to come.
