NYSE$RTX

Raytheon-Technologies · Q4 2019 earnings

Q4 2019 earnings · · Investor relations

Briefing

Reported record sales, adjusted earnings per share, and free cash flow.

United Technologies reported Q4 2019 results with sales of $19.6 billion, up 8% versus prior year, and adjusted EPS of $1.94. Full year sales were $77.0 billion, up 16% versus prior year, and adjusted EPS of $8.26.

  • Q4 sales were $19.6 billion, up 8 percent versus prior year, including 1 percent organic growth.
  • GAAP EPS was $1.32, up 59 percent versus prior year.
  • Adjusted EPS was $1.94, down 1 percent versus prior year.
  • Full year sales were $77.0 billion, up 16 percent versus prior year including 5 percent organic growth.

Headline financials

Total Revenue

$11.7B

Previous: $10.1B+15.5%
EPS (adj)

$1.34

Previous: $0.78+71.8%
Capital Expenditures

$1.87B

No prior period
Free Cash Flow

$1.89B

No prior period
Net Income

$1.14B

Previous: $686M+66.6%
Operating Income

$1.85B

Previous: $1.91B-3.1%
Gross Profit

$4.82B

Previous: $4.3B+12.1%
Cash & Equivalents

$7.38B

Previous: $3.69B+99.8%
Total Assets

$140B

Previous: $134B+4.1%
Stock-Based Comp

$95M

Previous: $70M+35.7%

Revenue & EPS history

Raytheon · Revenue · Quarterly

$11.7B

Q4 2019+15.5%vs Q4 2018
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Revenue by segment

Raytheon · $12.1B total across 2 segments · Q4 2019

  • Collins Aerospace
    $6.44B+31.5%
  • Pratt & Whitney
    $5.64B+1.8%

Forward guidance

Given the upcoming portfolio actions, the outlook for sales, adjusted EPS and free cash flow for Raytheon Technologies will be provided after the merger closes. The outlooks for Carrier and Otis will be provided in conjunction with their upcoming pre-spin investor meetings scheduled for February 10th and 11th, respectively.

Tailwinds

  • Pratt & Whitney sales up mid single digit versus 2019.
  • Pratt & Whitney adjusted operating profit up $225 to $275 million versus 2019.

Headwinds

  • Collins Aerospace sales down low single digit versus 2019, including an estimated 5 point headwind resulting from the suspension of 737 MAX production, lower ADS-B mandate sales and the expected impact of divestitures associated with the Raytheon merger.
  • Collins Aerospace adjusted operating profit down $275 to $325 million versus 2019, including an estimated headwind of approximately $550 to $600 million resulting from the 737 MAX, lower ADS-B mandate profit and the expected impact of divestitures associated with the Raytheon merger.

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 Q4 2019

Historical avgQ4 2019

-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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