NYSE$RTX

Raytheon-Technologies · Q4 2021 earnings

Q4 2021 earnings · · Investor relations

Briefing

Raytheon Technologies reported Q4 2021 results and announced its 2022 outlook.

Raytheon Technologies reported Q4 2021 sales of $17.0 billion with a GAAP EPS of $0.46 and adjusted EPS of $1.08. The company's operating cash flow was $3.2 billion and free cash flow was $2.2 billion. The company's backlog reached $156 billion.

  • Sales of $17.0 billion were reported.
  • GAAP EPS from continuing operations was $0.46, including $0.62 of acquisition accounting adjustments and net significant and/or non-recurring charges.
  • Adjusted EPS was $1.08.
  • Operating cash flow from continuing operations was $3.2 billion; Free cash flow was $2.2 billion.

Headline financials

Total Revenue

$17B

Previous: $16.4B+3.8%
EPS (adj)

$1.08

Previous: $0.74+45.9%
Capital Expenditures

$2.13B

Previous: $1.8B+18.9%
Free Cash Flow

$2.2B

Previous: $747M+194.5%
Net Income

$685M

Previous: $146M+369.2%
Operating Income

$1.32B

Previous: $142M+829.6%
Gross Profit

$3.43B

Previous: $2.15B+59.2%
Cash & Equivalents

$7.83B

Previous: $8.8B-11.0%
Total Assets

$161B

Previous: $162B-0.5%
Stock-Based Comp

$99M

Previous: $77M+28.6%

Revenue & EPS history

Raytheon · Revenue · Quarterly

$17B

Q4 2021+3.8%vs Q4 2020
Beat estimate in 6 of 16 quarters(38%)
ActualEstimate

Revenue by segment

Raytheon · $13.9B total across 3 segments · Q4 2021

  • Pratt & Whitney
    $5.12B+14.6%
  • Collins Aerospace
    $4.94B+13.0%
  • Raytheon
    $3.86B-9.8%

Forward guidance

Raytheon Technologies expects sales of $68.5 - $69.5 billion, adjusted EPS of $4.60 - $4.80, and free cash flow of approximately $6.0 billion for full year 2022.

Tailwinds

  • Sales of $68.5 - $69.5 billion
  • Adjusted EPS of $4.60 - $4.80
  • Free cash flow of approximately $6.0 billion
  • Share repurchase of at least $2.5 billion of RTX shares
  • The long-term outlook for commercial aerospace and defense markets remains strong.

Headwinds

  • Assumes the legislation requiring R&D capitalization for tax purposes is deferred beyond 2022.
  • Effect of changes in global economic, capital market and political conditions in the U.S. and globally and any changes therein, including financial market conditions, fluctuations in commodity prices, inflation, interest rates and foreign currency exchange rates, and geopolitical risks
  • Effect of and risks relating to coronavirus disease 2019 (COVID-19) pandemic on RTC’s business, supply chain, operations and the industries in which it operates, including the decrease in global air travel and disruption to business and other commercial activities, the impact on the demand for RTC’s products and services, the disruption to global supply and distribution capabilities which have impacted supplies required for RTC’s performance, the financial condition of RTC’s customers and suppliers, challenges relating to employee health, safety, and availability and workplace and facility operations, and the timing and extent of the recovery from COVID-19 and the impact on such recovery from new COVID-19 variants and outbreaks, vaccine-related issues and other future developments
  • Risks associated with U.S. government sales, including changes or shifts in defense spending due to budgetary constraints, spending cuts resulting from sequestration or the allocation of funds to governmental responses to COVID-19, a continuing resolution, a government shutdown, or otherwise, and uncertain funding of programs
  • Challenges in the development, production, delivery, support, and performance of RTC advanced technologies and new products and services and the realization of the anticipated benefits (including our expected returns under customer contracts), as well as the challenges of operating in RTC’s highly-competitive industries

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 2021

Historical avgQ4 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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