NYSE$RTX

Raytheon-Technologies · Q2 2020 earnings

Q2 2020 earnings · · Investor relations

Briefing

Raytheon Technologies reported a net loss due to significant charges, but demonstrated resilience in its defense business and achieved cost reduction and cash conservation targets.

Raytheon Technologies reported Q2 sales of $14.1 billion and adjusted sales of $14.3 billion. GAAP EPS was a loss of $2.56, including $2.96 of net charges. Adjusted EPS was $0.40. The company recorded a net loss of $3.8 billion, including $4.4 billion of net charges. Operating cash flow was $210 million, and free cash flow was an outflow of $248 million. Achieved ~$600 million of cost reduction and ~$1 billion of cash conservation actions.

  • Sales of $14.1 billion; adjusted sales of $14.3 billion.
  • GAAP EPS from continuing operations of a loss of $2.56, including $2.96 of net significant charges.
  • Adjusted EPS of $0.40.
  • Operating cash flow from continuing operations of $210 million; free cash flow outflow of $248 million.

Headline financials

Total Revenue

$14.1B

Previous: $19.6B-28.4%
EPS (adj)

$0.40

Previous: $2.22-82.0%
Free Cash Flow

-$3.84B

Previous: $1.9B-301.8%
Net Income

-$3.84B

Previous: $1.9B-301.8%
Operating Income

-$3.76B

Previous: $2.58B-245.5%
Gross Profit

$14.1B

Previous: $19.6B-28.4%
Cash & Equivalents

$6.98B

Previous: $6.82B+2.3%
Total Assets

$162B

Previous: $139B+16.2%
Stock-Based Comp

$72M

Previous: $92M-21.7%

Revenue & EPS history

Raytheon · Revenue · Quarterly

$14.1B

Q2 2020-28.4%vs Q2 2019
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Revenue by segment

Raytheon · $11.3B total across 3 segments · Q2 2020

  • Collins Aerospace
    $4.2B-36.1%
  • Raytheon
    $3.59B
  • Pratt & Whitney
    $3.49B-32.3%

Forward guidance

Pressures in commercial aerospace are expected to persist with low OEM production levels and aftermarket activity. Taking actions to strengthen the business, including achieving cost and cash savings. Balance sheet remains strong and the defense business will help weather the storm.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q2 2020

Historical avgQ2 2020

-0.3%

Avg return

Earnings day

+0.2%

Avg return

5 days after

+2.4%

Avg return

30 days after

44%

32 / 73 earnings

Positive

+8.7%

Q2 2024

Best reaction

-13.9%

Q3 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-4.2%-11.0%-10.1%
Q4 2025+3.1%+3.5%+1.8%
Q3 2025+7.6%+11.2%+7.5%
Q2 2025-0.4%-1.3%+0.1%
Q1 2025-9.8%-0.7%+6.3%
Q4 2024+2.6%+3.1%+4.4%
Q3 2024+1.0%-0.6%-4.3%
Q2 2024+8.7%+11.5%+13.1%
Q1 2024-0.5%-0.1%+3.8%
Q4 2023+5.3%+6.3%+5.3%
Q3 2023+7.2%+8.2%+9.1%
Q2 2023-11.0%-10.0%-12.2%
Q1 2023-4.7%-2.5%-9.1%
Q4 2022+3.9%+3.5%+3.5%
Q3 2022+0.9%+6.0%+8.2%
Q2 2022-4.5%-1.4%+1.6%
Q1 2022-0.8%-4.7%-4.6%
Q4 2021+1.0%+2.5%+7.0%
Q3 2021-2.3%-2.7%-4.5%
Q2 2021+1.5%+1.2%-1.4%
Q1 2021+2.6%+2.8%+9.4%
Q4 2020-1.2%+0.7%+10.6%
Q3 2020-13.9%-10.7%+21.4%
Q2 2020-2.8%-7.2%-0.3%
Q1 2020+1.3%-2.1%+24.4%
Q4 2019+1.2%-0.5%-12.5%
Q3 2019-0.3%+0.3%+3.0%
Q2 2019-0.5%-2.0%-9.5%
Q1 2019+3.3%+3.7%+10.6%
Q4 2018+0.9%+2.2%+2.2%
Q3 2018-2.7%-0.2%+3.7%
Q2 2018-2.0%-0.7%-1.8%
Q1 2018-1.9%-0.0%-4.5%
Q4 2017-0.1%-0.6%+5.2%
Q3 2017-0.1%+0.2%-2.5%
Q2 2017-0.1%+1.4%-3.0%
Q1 2017-0.5%+0.0%+5.8%
Q4 2016+0.6%+1.1%+1.6%
Q3 2016+0.8%+1.0%+7.7%
Q2 2016-0.6%-1.2%-0.3%
Q1 2016-0.3%
Q4 2015-1.2%
Q3 2015+0.4%
Q2 2015-2.2%
Q1 2015-2.5%
Q4 2014+1.7%
Q3 2014+1.0%
Q2 2014+0.0%
Q1 2014+2.7%
Q4 2013+2.6%
Q3 2013-1.0%
Q2 2013+0.3%
Q1 2013-0.5%
Q4 2012+0.8%
Q3 2012+1.1%
Q2 2012+0.2%
Q1 2012-0.2%
Q4 2011+2.2%
Q3 2011-0.4%
Q2 2011-1.7%
Q1 2011+1.3%
Q4 2010+1.5%
Q3 2010-0.4%
Q2 2010+0.3%
Q1 2010-2.8%
Q1 2009-2.8%
Q4 2007-1.5%
Q4 2009-1.5%
Q3 2009-1.6%
Q3 2008-1.6%
Q2 2008-2.4%
Q4 2008-2.4%
Q2 2009-2.4%

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