NYSE$RTX

Raytheon-Technologies · Q4 2020 earnings

Q4 2020 earnings · · Investor relations

Briefing

Raytheon Technologies reported Q4 2020 earnings, exceeding expectations for sales, EPS, and free cash flow, and announced its 2021 outlook.

Raytheon Technologies reported Q4 2020 sales of $16.4 billion and adjusted sales of $16.6 billion. GAAP EPS from continuing operations was $0.10, including $0.64 of net charges. Adjusted EPS was $0.74. The company recorded net income of $146 million, including $976 million of net charges. Operating cash flow was $1.4 billion, and free cash flow was $747 million.

  • Sales of $16.4 billion; Adjusted sales of $16.6 billion
  • GAAP EPS from continuing operations of $0.10, which included $0.64 of net significant and/or non-recurring charges and acquisition accounting adjustments
  • Adjusted EPS of $0.74
  • Operating cash flow from continuing operations of $1.4 billion; Free cash flow of $747 million

Headline financials

Total Revenue

$16.4B

Previous: $11.7B+40.4%
EPS (adj)

$0.74

Previous: $1.34-44.8%
Capital Expenditures

$1.8B

Previous: $1.87B-3.9%
Free Cash Flow

$747M

Previous: $1.89B-60.4%
Net Income

$146M

Previous: $1.14B-87.2%
Operating Income

$142M

Previous: $1.85B-92.3%
Gross Profit

$2.15B

Previous: $4.82B-55.3%
Cash & Equivalents

$8.8B

Previous: $7.38B+19.3%
Total Assets

$162B

Previous: $140B+16.1%
Stock-Based Comp

$77M

Previous: $95M-18.9%

Revenue & EPS history

Raytheon · Revenue · Quarterly

$16.4B

Q4 2020+40.4%vs Q4 2019
Beat estimate in 8 of 16 quarters(50%)
ActualEstimate

Revenue by segment

Raytheon · $13.1B total across 3 segments · Q4 2020

  • Pratt & Whitney
    $4.47B-20.9%
  • Collins Aerospace
    $4.37B-32.1%
  • Raytheon
    $4.28B

Forward guidance

Raytheon Technologies provided its outlook for the full year 2021.

Tailwinds

  • Sales of $63.4 - $65.4 billion
  • Adjusted EPS of $3.40 - $3.70
  • Free cash flow of approximately $4.5 billion
  • Authorized a $5 billion share repurchase program in December
  • Plan to repurchase at least $1.5 billion of shares in 2021

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 2020

Historical avgQ4 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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