NYSE$RTX

Raytheon-Technologies · Q2 2021 earnings

Q2 2021 earnings · · Investor relations

Briefing

Raytheon Technologies reported strong second quarter results, exceeding expectations for adjusted EPS and free cash flow. The company raised its adjusted EPS and free cash flow outlook, as well as the low end of its sales outlook for 2021. Additionally, the gross merger cost synergy target was increased to $1.5 billion.

Raytheon Technologies reported a strong second quarter, driven by growth in defense businesses and recovery in commercial aerospace. The company raised its adjusted EPS and free cash flow outlook for 2021 and increased its merger-related gross cost synergy target.

  • Sales of $15.9 billion.
  • GAAP EPS from continuing operations of $0.69, which included $0.34 of acquisition accounting adjustments and net significant and/or non-recurring charges.
  • Adjusted EPS of $1.03.
  • Free cash flow of $966 million.

Headline financials

Total Revenue

$15.9B

Previous: $14.1B+12.9%
EPS (adj)

$1.03

Previous: $0.40+157.5%
Free Cash Flow

$1.03B

Previous: -$3.84B+126.9%
Net Income

$1.03B

Previous: -$3.84B+126.9%
Operating Income

$1.28B

Previous: -$3.76B+134.1%
Gross Profit

$15.9B

Previous: $14.1B+12.9%
Cash & Equivalents

$8.05B

Previous: $6.98B+15.4%
Total Assets

$159B

Previous: $162B-1.7%
Stock-Based Comp

$143M

Previous: $72M+98.6%

Revenue & EPS history

Raytheon · Revenue · Quarterly

$15.9B

Q2 2021+12.9%vs Q2 2020
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Revenue by segment

Raytheon · $12.8B total across 3 segments · Q2 2021

  • Collins Aerospace
    $4.55B+8.2%
  • Pratt & Whitney
    $4.28B+22.7%
  • Raytheon
    $3.99B+11.0%

Forward guidance

Raytheon Technologies updates its 2021 outlook and now anticipates the following:

Tailwinds

  • Sales of $64.4 - $65.4 billion, up from $63.9 - $65.4 billion
  • Adjusted EPS of $3.85 - $4.00, up from $3.50 - $3.70
  • Free cash flow of $4.5 - $5.0 billion, up from approximately $4.5 billion

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 2021

Historical avgQ2 2021

-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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