What's Next: RTX's Earnings Preview

RTX RTX is preparing to release its quarterly earnings on Tuesday, 2025-04-22. Here's a brief overview of what investors should keep in mind before the announcement.

Analysts expect RTX to report an earnings per share (EPS) of $1.36.

Anticipation surrounds RTX's announcement, with investors hoping to hear about both surpassing estimates and receiving positive guidance for the next quarter.

New investors should understand that while earnings performance is important, market reactions are often driven by guidance.

Earnings History Snapshot

The company's EPS beat by $0.16 in the last quarter, leading to a 2.51% drop in the share price on the following day.

Here's a look at RTX's past performance and the resulting price change:

Performance of RTX Shares

Shares of RTX were trading at $128.89 as of April 18. Over the last 52-week period, shares are up 24.04%. Given that these returns are generally positive, long-term shareholders are likely bullish going into this earnings release.

Analysts' Perspectives on RTX

Understanding market sentiments and expectations within the industry is crucial for investors. This analysis delves into the latest insights on RTX.

RTX has received a total of 13 ratings from analysts, with the consensus rating as Outperform. With an average one-year price target of $147.92, the consensus suggests a potential 14.76% upside.

Peer Ratings Comparison

The analysis below examines the analyst ratings and average 1-year price targets of GE Aerospace, Lockheed Martin and Northrop Grumman, three significant industry players, providing valuable insights into their relative performance expectations and market positioning.

• Analysts currently favor an Outperform trajectory for GE Aerospace, with an average 1-year price target of $221.7, suggesting a potential 72.01% upside.
• Analysts currently favor an Neutral trajectory for Lockheed Martin, with an average 1-year price target of $508.83, suggesting a potential 294.78% upside.
• Analysts currently favor an Outperform trajectory for Northrop Grumman, with an average 1-year price target of $572.3, suggesting a potential 344.02% upside.

Peer Metrics Summary

The peer analysis summary offers a detailed examination of key metrics for GE Aerospace, Lockheed Martin and Northrop Grumman, providing valuable insights into their respective standings within the industry and their market positions and comparative performance.

Key Takeaway:

RTX ranks at the top for Revenue Growth among its peers. In terms of Gross Profit, RTX is in the middle. For Return on Equity, RTX is at the bottom compared to its peers.

Delving into RTX's Background

RTX is an aerospace and defense manufacturer formed from the merger of United Technologies and Raytheon, with roughly equal exposure as a supplier to commercial aerospace and to the defense market across three segments: Collins Aerospace, a diversified aerospace supplier; Pratt & Whitney, a commercial and military aircraft engine manufacturer; and Raytheon, a defense prime contractor providing a mix of missiles, missile defense systems, sensors, hardware, and communications technology to the military.

RTX's Economic Impact: An Analysis

Market Capitalization: Exceeding industry standards, the company's market capitalization places it above industry average in size relative to peers. This emphasizes its significant scale and robust market position.

Positive Revenue Trend: Examining RTX's financials over 3 months reveals a positive narrative. The company achieved a noteworthy revenue growth rate of 8.51% as of 31 December, 2024, showcasing a substantial increase in top-line earnings. In comparison to its industry peers, the company trails behind with a growth rate lower than the average among peers in the Industrials sector.

Net Margin: RTX's net margin surpasses industry standards, highlighting the company's exceptional financial performance. With an impressive 6.85% net margin, the company effectively manages costs and achieves strong profitability.

Return on Equity (ROE): RTX's ROE lags behind industry averages, suggesting challenges in maximizing returns on equity capital. With an ROE of 2.44%, the company may face hurdles in achieving optimal financial performance.

Return on Assets (ROA): RTX's ROA falls below industry averages, indicating challenges in efficiently utilizing assets. With an ROA of 0.9%, the company may face hurdles in generating optimal returns from its assets.

Debt Management: With a below-average debt-to-equity ratio of 0.71, RTX adopts a prudent financial strategy, indicating a balanced approach to debt management.

To track all earnings releases for RTX visit their earnings calendar on our site.

This article was generated by Benzinga's automated content engine and reviewed by an editor.