/RTX%20Corp%20logo%20on%20phone-by%20T_Schneider%20via%20Shutterstock.jpg)
Arlington, Virginia-based RTX Corporation (RTX) operates as an aerospace and defense company. It focuses on advancing aviation, building smarter defense systems and creating innovations to take humanity deeper into space. Valued at $154.2 billion by market cap, RTX employs over 185,000 people across its Collins Aerospace, Pratt & Whitney and Raytheon businesses.
The defense giant is expected to release its fourth-quarter earnings on Tuesday, Jan. 28. Ahead of the event, analysts expect RTX to report a non-GAAP profit of $1.35 per share, up 4.7% from $1.29 per share reported in the year-ago quarter. Furthermore, the company has surpassed Wall Street’s bottom-line expectations in each of the past four quarters. Its adjusted EPS for the last reported quarter surged 16% year-over-year to $1.45, exceeding analysts’ estimates by 9%.
For fiscal 2024, RTX is expected to deliver an adjusted EPS of $5.56, up 9.9% from $5.06 in fiscal 2023. While in 2025, its adjusted earnings are expected to grow 9.2% year-over-year to $6.07 per share.
RTX stock has surged over 33.6% in the past 52 weeks, outperforming the S&P 500 Index’s ($SPX) 27.2% gains and the Industrial Select Sector SPDR Fund’s (XLI) 18.9% returns during the same time frame.
RTX stock touched its 52-week high before observing a slight dip after the unveiling of its impressive Q3 results on Oct. 22. The company exceeded Wall Street expectations with a 6% year-over-year growth in adjusted sales to a staggering $20.1 billion. Even more impressive, RTX’s organic sales surged 8% year-over-year to approximately $19 billion. Highlighting its profitability, RTX delivered a 6.9% year-over-year surge in adjusted net income to shareholders, totaling $1.9 billion.
The rise in geopolitical tensions globally has fueled demand for RTX's defense portfolio. Coupled with disciplined expense management, the company has witnessed remarkable growth in earnings. By the end of the quarter, RTX's backlog stood at a staggering $221 billion. Considering the ongoing business momentum, RTX raised its full-year sales and earnings guidance, further bolstering investor confidence.
The consensus opinion on RTX stock is moderately bullish, with an overall “Moderate Buy” rating. Out of the 22 analysts covering the stock, seven recommend “Strong Buy,” one advises “Moderate Buy,” 13 suggest “Hold,” and one advocates a “Strong Sell” rating. Its mean price target of $132.81 represents a 16.4% premium to current price levels.
