NEW YORK - Raytheon Technologies (NYSE:RTX) saw its shares rise 2.2% as the company released a robust forecast for the full year 2024, surpassing analyst expectations.
The aerospace and defense company reported second-quarter earnings per share (EPS) of $1.41, which was $0.12 higher than the analyst estimate of $1.29. Revenue for the quarter reached $19.8 billion, also exceeding the consensus estimate of $19.28 billion and marking an 8% increase from the same quarter last year.
The positive market response was driven by the company's strong guidance for the upcoming year. Raytheon (NYSE:RTN) updated its full-year 2024 adjusted EPS guidance to a range of $5.35 to $5.45, notably higher than the analyst consensus of $4.95.
Additionally, the company anticipates full-year revenue to be between $78.75 billion and $79.5 billion, which is significantly above the consensus estimate of $72.8 billion.
Raytheon's President and CEO, Chris Calio, attributed the optimistic outlook to robust operational performance, stating, "The strength in our end markets and first half performance give us the confidence to increase our outlook for adjusted sales and adjusted EPS for the full year."
He also highlighted the company's substantial backlog, which stands at $206 billion, and the high demand across Raytheon's portfolio as key factors in their strategic planning.
Despite the positive outlook for adjusted figures, the company's GAAP EPS for the second quarter was $0.08, a 91% decrease from the prior year, largely due to acquisition accounting adjustments and charges related to legal matters and a development contract.
However, these impacts were excluded from the adjusted results, which investors appeared to favor, as reflected in the stock's upward movement.
The company's commitment to executing customer commitments, investing in innovative technologies, and leveraging its scale to drive value was also emphasized by Calio. With a focus on operational excellence and strategic investments, Raytheon is poised to maintain its momentum in the aerospace and defense sectors.
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