Raytheon Reports Mixed Q4 Results; Guides FY22 Revenue, EPS Below Consensus - RTX (NYSE:RTX)

Raytheon Technologies Corp RTX reported fourth-quarter FY21 sales growth of 4% year-over-year to $17.04 billion, missing the consensus of $17.26 billion.
Adjusted EPS improved to $1.08 compared to $0.74 in 4Q20, beating the consensus of $1.02.
Collins Aerospace sales of $4.94 billion (+13% Y/Y) and adjusted operating margin expanded by 750 bps to 9.5%.
Pratt & Whitney adjusted sales of $5.12 billion (+14% Y/Y) and adjusted operating margin of 3.2%, up by 90 bps.
Raytheon Intelligence & Space adjusted sales declined 2% Y/Y to $3.87 billion and adjusted operating margin of 10.3%, up by 110 bps.
Raytheon Missiles & Defense adjusted sales totaled $3.9 billion (-10% Y/Y), and the adjusted operating margin was 12.6%, down by 90 bps.
Adjusted total segment operating margin improved to 8.5%, compared to 6.6% a year ago. The total adjusted operating profit increased by 29.8% Y/Y to $1.86 billion.
Raytheon generated cash from operating activities for FY21 of $7.14 billion, compared to $4.33 billion a year ago. Free cash flow of $5.01 billion. It held cash and equivalents of $7.83 billion as of December 31, 2021.
Backlog at the quarter was $156 billion, of which $93 billion was from commercial aerospace and $63 billion was from defense.
FY22 Outlook: Raytheon expects Sales of $68.5 billion - $69.5 billion, below the consensus of $70.08 billion. Adjusted EPS of $4.60 - $4.80, below the consensus of $4.96.
Price Action: RTX shares traded lower by 0.27% at $87.88 on the last check Tuesday.

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