==RTX (RTX) reported earnings on Tue 25 Jul 23 (b/o)

 

RTX beats by $0.11, beats on revs; guides FY23 EPS in-line, revs above consensus; lowers FY23 free cash flow 

• Reports Q2 (Jun) earnings of $1.29 per share, excluding non-recurring items, $0.11 better than the FactSet Consensus of $1.18; revenues rose 12.3% year/year to $18.32 bln vs the $17.68 bln FactSet Consensus.
• Co raises guidance for FY23, sees EPS of $4.95 to $5.05 from $4.90 to $5.05, excluding non-recurring items, vs. $5.02 FactSet Consensus; sees FY23 revs of $73.0 bln to $74.0 bln from $72.0 bln to $73.0 bln vs. $72.77 bln FactSet Consensus.
  • FY23 buyback expected to reach $3.0 bln.
• Lowers FY23 free cash flow to ~$4.3 bln from ~$4.8 bln to reflect the impact of an issue that has recently come to light, which will require Pratt & Whitney to remove certain engines from service for inspection earlier than expected.
• Unrelated to the company's second quarter earnings results, Pratt & Whitney has determined that a rare condition in powder metal used to manufacture certain engine parts will require accelerated fleet inspection. This does not impact engines currently being produced.: As a result, the business anticipates that a significant portion of the PW1100G-JM engine fleet, which powers the A320neo, will require accelerated removals and inspections within the next nine to twelve months, including approximately 200 accelerated removals by mid-September of this year. The business is working to minimize operational impacts and support its customers.