Raytheon Technologies CEO Greg Hayes said Tuesday that results at the defense and aerospace manufacturer will continue to suffer from the impact of supply chain disruptions and labor shortages.
However, the top executive at Raytheon (NYSE:RTX) told CNBC that the firm was able to raise its earnings guidance due to the rebound in commercial air travel.
Early Tuesday, Raytheon (RTX) reported a quarterly profit that topped expectations. However, the firm's revenue came up short, missing analysts' consensus with 8% year-over-year growth.
The firm also raised its earnings forecast for the full year. At the same time, its revenue target was at the low end of its previous range and below the amount predicted by analysts.
"The basis for taking up the guidance for the year was the strength we're seeing in the commercial aftermarket," Hayes explained.
Looking at some of the headwinds it faces in the near term, Hayes estimated that it will lose about $400M in revenue for the full year because of supply chain issues and labor shortages.
He noted that these delayed sales mostly come from the defense side of its business, meaning it will eventually book the revenue once it can manufacture the products.
Hayes reported that the company has attempted to sidestep the supply chain disruptions by bringing material into its factories ahead of when it is needed.
The company is also looking for alternative suppliers, the Raytheon CEO said.
RTX slipped nearly 2% in Tuesday's intraday action, dropping to $89.89 at about 10:30 AM ET.
The stock had reached a 52-week high of $92.32 last week.
RTX climbed steadily from February into June before settling into a multi-month trading range. The stock saw renewed buying interest starting in late September, which propelled it to its recent highs.
With its gains throughout much of the year, RTX has posted a return of nearly 28% for 2021. That outstrips the S&P 500, which has risen 23% over that time: