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Valued at a market cap of $156.8 billion, RTX Corporation (RTX) is an aerospace and defense company that provides systems and services for the commercial, military, and government customers. The Arlington, Virginia-based company plays a critical role in advancing aerospace innovation and national security across both the U.S. and international markets. It is expected to announce its fiscal Q1 earnings for 2025 before the market opens on Tuesday, Apr. 22.
Prior to this event, analysts expect this aerospace and defense giant to report a profit of $1.34 per share, in-line with the year-ago quarter. The company has a promising trajectory of consistently beating Wall Street's bottom-line estimates in each of the last four quarters. Its earnings of $1.54 per share in the previous quarter topped the consensus estimate by a notable margin of 12.4%.
For the full year, analysts expect RTX to report EPS of $6.13, up 7% from $5.73 in fiscal 2024. Its EPS is expected to further grow 11.6% year over year to $6.84 in fiscal 2026.
RTX has rallied 15.4% over the past 52 weeks, outpacing both the S&P 500 Index's ($SPX) 2.7% fall, and the Industrial Select Sector SPDR Fund’s (XLI) 6.6% loss over the same time frame.
On Jan. 28, shares of RTX rose 2.6% after the company reported better-than-expected Q4 results. Its adjusted earnings came in at $1.54 per share, while revenue totaled $21.6 billion, both surpassing estimates and reflecting a year-over-year growth of 19.4% and 8.5%, respectively. The solid performance was driven by robust growth across all its business segments. Adding to investor confidence, management highlighted strong momentum heading into 2025, backed by a notable backlog of $218 billion and unprecedented demand for its products and solutions.
For 2025, RTX expects adjusted sales between $83 billion and $84 billion, including organic growth of 4% to 6%, and projects adjusted EPS in the range of $6 to $6.15.
Wall Street analysts are moderately optimistic about RTX’s stock, with a "Moderate Buy" rating overall. Among 23 analysts covering the stock, 13 recommend "Strong Buy," one suggests a “Moderate Buy,” eight advise “Hold,” and one gives a “Strong Sell” rating. The mean price target for RTX is $140.91, which indicates a 20.1% potential upside from the current levels.
