Aerospace major Raytheon beats profit estimates on strong travel demand

 

Aerospace and defense giant Raytheon Technologies (RTX.N) beat analysts’ expectations in its fourth-quarter earnings on Tuesday as strong travel demand around the world boosted demand for its jet engines, parts and services. surpassed.

Strong travel demand and supply chain disruptions are forcing airlines to stick with older aircraft for the long term, offering customers Boeing (BA.N) and Airbus SE (AIR. PA).

Raytheon reported his adjusted net income per share for the quarter ended December 31 was $1.27, according to Refinitiv data.

The Tomahawk missile maker had forecast adjusted earnings for 2023 in the range of $4.90 to $5.05 per share.

Collins Aerospace, the avionics division of the Arlington, Virginia-based company, reported quarterly revenue increases of 14.6% and 60%.
Operating profit in the quarter was up 7%.

The defense industry has been hit by supply chain failures but has benefited from geopolitical tensions since Russia’s invasion of Ukraine 11 months ago, forcing countries to increase their defense budgets. .

Raytheon’s fourth-quarter missile and defense revenue rose 6.2% to $4.1 billion.

The company expects to repurchase his $3 billion share in 2023, realigning the portfolio from his four segments to his three business segments, which include Collins Aerospace, Pratt & Whitney and Raytheon. says.

Raytheon’s fourth quarter net sales increased 6.2% to $18.09 billion, below the median analyst estimate of $18.15 billion.

Originally published at https://businessdor.com on January 24, 2023.