NYSE$RTX

Raytheon-Technologies · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Raytheon Technologies reported mixed Q3 2022 results with strong organic sales growth offset by lower adjusted EPS, while backlog grew.

Raytheon Technologies reported Q3 2022 results with sales of $17.0 billion, up 5% year-over-year, including 6% organic growth. GAAP EPS was $0.94, up 1%, while adjusted EPS was $1.21, down 4%. The company's backlog grew to $168 billion. They are also updating their full year sales and EPS guidance.

  • Sales of $17.0 billion, up 5 percent versus prior year including 6 percent organic growth
  • GAAP EPS from continuing operations of $0.94, up 1 percent versus prior year
  • Adjusted EPS of $1.21, down 4 percent versus prior year
  • Company backlog grew over $6 billion in the quarter, to $168 billion

Headline financials

Total Revenue

$17B

Previous: $16.2B+4.6%
EPS (adj)

$1.21

Previous: $1.26-4.0%
Capital Expenditures

$515M

No prior period
Free Cash Flow

$1.39B

Previous: $1.39B-0.4%
Net Income

$1.39B

Previous: $1.39B-0.4%
Operating Income

$1.48B

Previous: $1.34B+10.2%
Gross Profit

$17B

Previous: $16.2B+4.6%
Cash & Equivalents

$5.38B

Previous: $7.48B-28.0%
Total Assets

$158B

Previous: $159B-0.3%
Stock-Based Comp

$106M

Previous: $116M-8.6%

Revenue & EPS history

Raytheon · Revenue · Quarterly

$17B

Q3 2022+4.6%vs Q3 2021
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

Raytheon · $14.2B total across 3 segments · Q3 2022

  • Pratt & Whitney
    $5.38B+13.9%
  • Collins Aerospace
    $5.1B+11.1%
  • Raytheon
    $3.68B-5.7%

Forward guidance

Raytheon Technologies provided updated guidance for full year 2022.

Tailwinds

  • Adjusted EPS of $4.70 - $4.80, up from $4.60 - $4.80
  • Confirms free cash flow of approximately $4.0 billion
  • Confirms share repurchase of at least $2.5 billion of RTX shares
  • Focused on operational excellence, including cost containment and program performance
  • Investing in next-generation technology and innovation

Headwinds

  • Sales of $67.0 - $67.3 billion, down from $67.75 - $68.75 billion
  • Expect industry-wide challenges to continue near-term
  • Continuing supply chain constraints
  • Declines on Land Warfare and Air Defense programs and Naval Power programs
  • Unfavorable program mix

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 Q3 2022

Historical avgQ3 2022

-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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