FMP
Jan 27, 2025
RTX Corporation, listed on the NYSE, is a prominent player in the aerospace and defense industry. The company is set to release its fourth-quarter 2024 earnings on January 28, 2025. Analysts predict an earnings per share (EPS) of $1.37, with revenue expected to reach approximately $20.5 billion. RTX's performance is closely watched, given its significant role in the industry.
Analysts project a 6.2% increase in EPS from the previous year, reaching $1.37 for the quarter ending December 2024. Revenue is expected to rise by 3.2% to $20.56 billion. However, there has been a 2.5% downward revision in the consensus EPS estimate over the past 30 days, indicating a shift in analysts' expectations. Such revisions often predict potential investor reactions to the stock.
RTX has consistently delivered an average earnings surprise of 7.62% over the past four quarters. The upcoming results are expected to benefit from strong sales in its major business segments. Increasing domestic and international air traffic has boosted demand for commercial jets' aftermarket services, likely enhancing RTX's commercial aftermarket sales in the fourth quarter.
The demand for wide-body, narrow-body, and business jets has increased, driven by the rise in commercial air passenger travel. Additionally, the solid development volume for the F135 core upgrade program is expected to positively impact RTX's quarterly results. These factors contribute to the anticipated year-over-year increase in earnings for the quarter ending December 2024.
RTX's financial metrics provide insight into its valuation. The company has a P/E ratio of approximately 35.41, indicating the price investors are willing to pay for each dollar of earnings. The price-to-sales ratio stands at about 2.11, and the enterprise value to sales ratio is around 2.58. The debt-to-equity ratio is approximately 0.72, suggesting a moderate level of debt compared to equity.
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