Raytheon Technologies (NYSE:RTX) reported better-than-expected Q1 results to send its shares higher in pre-market Tuesday.
RTX posted EPS of $1.22 on revenue of $17.2 billion, beating the consensus for EPS of $1.13 on revenue of $16.91 billion. Revenue increased by 9.5% year-over-year as Pratt & Whitney sales rose 15%.
"Our year is off to a strong start, including solid top- and bottom-line performance. Continued global airline travel and defense systems demand point to sustained top line growth, as evidenced by $21 billion in new orders and a record backlog of $180 billion across our industry-leading portfolio," said Raytheon Technologies Chairman and CEO Greg Hayes.
Hayes also added that the business realignment, which is on track for July, “will unlock additional value as we more fully integrate our teams and capabilities to drive improved customer solutions and operational performance."
The company also reaffirmed its prior FY23 forecast for EPS of $4.80-5.05 on revenue of $72.5B. Analysts were looking for EPS of $5.01 on revenue of $72.4B.
TD Cowen analysts said:
"Investors should like the Q1 sales/EPS beat, and strong demand visibility (Comml A/M vigor; Q1 Defense B-B ~1.3x vs. LMT's ~0.7x). But FCF was very weak, & it's unclear whether RTX's FY23 guide reit. will be good enough for the stock to work today.”