NYSE$RTX

Raytheon-Technologies · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Raytheon Technologies reported solid full-year results with strong free cash flow that exceeded expectations, announced 2023 outlook and plan to realign into three business segments.

Raytheon Technologies reported Q4 2022 sales of $18.1 billion, a 6% increase year-over-year, with GAAP EPS of $0.96 and adjusted EPS of $1.27. The company's backlog reached $175 billion. For 2023, the company anticipates sales between $72.0 and $73.0 billion, adjusted EPS between $4.90 and $5.05, and free cash flow of approximately $4.8 billion.

  • Q4 2022 sales increased by 6% to $18.1 billion.
  • GAAP EPS from continuing operations was $0.96, including $0.31 of acquisition accounting adjustments and net significant charges.
  • Adjusted EPS was $1.27, up 18% year-over-year.
  • Free cash flow was $3.8 billion.

Headline financials

Total Revenue

$18.1B

Previous: $17B+6.2%
EPS (adj)

$1.27

Previous: $1.08+17.6%
Capital Expenditures

$855M

Previous: $2.13B-59.9%
Free Cash Flow

$3.77B

Previous: $2.2B+71.5%
Net Income

$1.42B

Previous: $685M+107.6%
Operating Income

$1.5B

Previous: $1.32B+13.7%
Gross Profit

$3.57B

Previous: $3.43B+4.1%
Cash & Equivalents

$6.22B

Previous: $7.83B-20.6%
Total Assets

$159B

Previous: $161B-1.6%
Stock-Based Comp

$102M

Previous: $99M+3.0%

Revenue & EPS history

Raytheon · Revenue · Quarterly

$18.1B

Q4 2022+6.2%vs Q4 2021
Beat estimate in 12 of 15 quarters(80%)
ActualEstimate

Revenue by segment

Raytheon · $14.9B total across 3 segments · Q4 2022

  • Collins Aerospace
    $5.66B+14.6%
  • Pratt & Whitney
    $5.65B+10.5%
  • Raytheon
    $3.54B-8.2%

Forward guidance

Raytheon Technologies expects continued sales and earnings growth in 2023.

Tailwinds

  • Sales of $72.0 - $73.0 billion
  • Adjusted EPS of $4.90 - $5.05
  • Free cash flow of approximately $4.8 billion
  • Share repurchase of $3.0 billion of RTX shares
  • Portfolio is well positioned to capture growing demand and we expect to deliver sales growth and margin expansion, along with strong free cash flow generation.

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 2022

Historical avgQ4 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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