==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.

Earnings this week : July 24 - 28, 23 (wk 30)

Monday (Jul 24)

• Morning:  BOH DPZ HOPE PHG
• Afternoon: AGYS AGNC ARE BRO CADE CDNS CATY CHX CLF CCK FFIV HSTM HXL IBTX LOGI MEDP NXGN NWE NXPI PKG RRC RGP RLI SSD TBI WHR WSFS

Tuesday (Jul 25)

• Morning: MMM ALK ACI HOUS ADM ARCC AWI ABG AUB AVY BKU BIIB GLW CTS DHR DOV DOW FELE GATX GEHC GE GM HRI HUBB IVZ IRDM KMB LW LTH MCO MSCI NEE NEP NUE NVR ONB PCAR PJT PII PHM RTX SASR ST SHW SFNC SITC SBSI SPOT TRU VZ XRX
• Afternoon:  GOOG ASH ATRC BANC BDN CALM CNI CB CSGP CR EGP WIRE ENVA EQT EEFT FCF HA HIW KALU LXFR MANH MTDR MMSI MSFT NEX PACW PRO RNR RNST ROIC RHI SNAP TDOC TENB TXN TRMK UMBF UHS VBTX VICR V WM WSBC

Wednesday (Jul 26)

• Morning:  AMG ALKS ALLE APH T ADP BXMT BA BOKF GIB CHKP CME KO CSTM EVR FI FTV GD GPI HCSG HES HLT LAD LIVN MNRO COOP NAVI EDU ODFL OMF OTIS OC PAG BPOP PRG PB DGX RCI RES RPM R SLGN SLAB SCL TMHC TEL TDY TMO TLRY TSEM TNL UNP UMC VIRT WNC
• Afternoon:  AEM AGI AIN ALGN AWK AMP NLY AM AR ACGL ASGN AGR CSL CLS CCS CHE CMG CHDN FIX CNMD CLB CVBF EBAY EW ESI EIG ENVX EQC EG EVTC FIBK FLEX FTAI GFL GL GSHD GGG HP ICLR IEX IMAX PI INVH LHX LRCX LSTR LC MAT MXL META MEOH MAA MC MOH MYRG NTGR NXT NOV ORLY OII CASH PTEN PEGA PDM PPC PLXS PTC QS RJF ROL SLM STX SEIC NOW STAG STC SUI NOVA TER TNET TROX TYL UDR URI VMI VICI VKTX VSTO WU WH

Thursday (Jul 27)

• Morning: AOS ABBV AGCO AEP AMT MT ARCH AMBP ATHM AVNT BCS BAX BSX BFH BMY BC CRS CARR CBZ CBRE CVE CNP CMS CNX CMCSA CROX CFR DTE EXP EME EXLS XPRO FSS FAF FBP FCFS FSV FCN GWW HEES HOG HCA HSY HTZ HON INMD IP ITGR IART KBR KDP KIM KEX LH LAZ TREE LII LECO LIN LKQ HZO MLM MAS MA MCD MDC MBLY NEOG NTCT NYCB NSC NOC NVCR OTLY OIS OPCH OSTK PPBI PATK BTU PNR PRFT PCG PDS PRCT RS RCL SPGI SAH LUV SRCL STM STRA FTI TECK TXT SHYF TSCO TW TPH TRS VLO VLY WAB WST WEX WTW XEL
• Afternoon:  ACHC AB ALSN AMH ABCB APPF ATR AJG AXNX AX BZH BJRI SAM BYD CP CWST CC CINF OFC COUR CUZ DECK DXCM DLR EMN EIX ENPH EQR ESS EXPO FHI FSLR F FBIN GLPI HIG PEAK HUBG HURN INTC JNPR KNSL KLAC LYV LPLA LTC MGRC MTH MTD MTX MHK MDLZ NATI OLN PEB PFSI PFG PFS ROKU SIMO SKX SKYW SNBR SSB SPSC SSNC SG TMUS TXRH SLCA X UCTT VRSN WY

 Friday (Jul 28)

• Morning:  AON ARCB AZN AVTR B BAH CNC GTLS CHTR CVX CHD CNHI CL DAN XOM FHB BEN GNTX IMO MOG.A NWL NMRK NVT PIPR POR PG SAIA SNY STEL STVN TROW TRP WPC WT

====Raytheon (RTN) and United Technologies (UTX) announce all-stock merger of equals

United Technologies said Sunday that it struck a deal to merge with Raytheon, an all-stock transaction that would create an aerospace and defense giant rivaling Boeing.

• The deal could put pressure on peers to keep up with the pair, making other small-capitalization defense companies look all the more attractive as targets for acquisition. Together, United Technologies (ticker: UTX) and Raytheon (RTN) would have about $72 billion in aerospace and defense revenues.
• In July 2023, Raytheon Technologies Corporation officially changed its name to RTX Corporation.

The transaction will create a premier systems provider with advanced technologies to address rapidly growing segments within aerospace and defense. The combined company, which will be named Raytheon Technologies Corporation, will offer expanded technology and R&D capabilities to deliver innovative and cost-effective solutions aligned with customer priorities and the national defense strategies of the U.S. and its allies and friends. The combination excludes Otis and Carrier, which are expected to be separated from United Technologies in the first half of 2020 as previously announced.

• Under the terms of the agreement, which was unanimously approved by the Boards of Directors of both companies, Raytheon shareowners will receive 2.3348 shares in the combined company for each Raytheon share. Upon completion of the merger, United Technologies shareowners will own approximately 57 percent and Raytheon shareowners will own approximately 43 percent of the combined company on a fully diluted basis.
• The merger is expected to close in the first half of 2020, following completion by United Technologies of the previously announced separation of its Otis and Carrier businesses. The timing of the separation of Otis and Carrier is not expected to be affected by the proposed merger and remains on track for completion in the first half of 2020. The merger is intended to qualify as a tax-free reorganization for U.S. federal income tax purposes.
• The combined company expects to return $18 to $20 billion of capital to shareowners in the first 36 months following completion of the merger. As a result of the combination, the company also expects to capture more than $1 billion in gross annual run-rate cost synergies by year four post-close, with approximately $500 million in annual savings returned to customers. In addition, the combination presents significant long-term revenue opportunities from technology synergies.
• There is no change to either Raytheon's or United Technologies' financial outlook for 2019.