Raytheon Technologies Q4 preview: Will earnings be hit by labor, parts shortages?

krblokhin

Raytheon Technologies (NYSE:RTX) is scheduled to announce Q4 results on Tuesday, January 24, before market open.

Consensus EPS estimate is $1.25 (+15.7% Y/Y) and consensus revenue estimate is $18.16B (+6.6% Y/Y).

Over the last 2 years, RTX has beaten EPS estimates 100% of the time and revenue estimates 25% of the time.

Over the last 3 months, EPS estimates have seen 10 upward revisions and 5 downward. Revenue estimates have seen 3 upward revisions and 10 downward.

Baird expects Raytheon's (RTX) results to be relatively in line with Street estimates. Investors will look out for comments on recovery from COVID capacity cuts, as well as labor and parts shortages in casting/forging.

Goldman Sachs downgraded Raytheon (RTX) due to its smaller exposure to the booming commercial aircraft market.

Raytheon (RTX) is said to be mulling a sale of its actuation unit, which makes products including flight controls, for as much as ~$1B.

The company announced a new $6B stock buyback program.

Raytheon (RTX) fell after its Q3 revenue missed estimates and the firm dimmed its outlook.

SA contributor Christopher Robb believes Raytheon's (RTX) secular tailwinds and strong competitive position insulate it from risks facing markets in 2023.