Raytheon Technologies Corp (NYSE: RTX) stock rose over 0.4% on 28th April, 2021 (Source: Google finance) after the company posted better than expected earnings for the first quarter of FY 21. The company generated free cash flow of $336 million, primarily due to better-than-expected working capital timing.
Collins Aerospace sales were $4.4 billion in the quarter, down 32% on an adjusted basis and down 31% on an organic basis, mainly due to the expected adverse impact of COVID-19 on the commercial aerospace industry. By channel, commercial OE sales had fallen down 45%, mainly driven due to the impact of the current environment. Commercial aftermarket sales had fallen down 43% driven by a 39% decline in parts and repair, a 66% decline in provisioning and a 32% decline in modifications and upgrades. Sequentially, however, commercial aftermarket sales were up 11% driven by growth in parts and repair and modifications and upgrades. Defense sales have declined 3% on an adjusted basis, but up 4% organically. Organic growth was on back of F-35 as well as growth in several avionics product lines. Adjusted operating profit of $332 million was down $952 million from prior year and better than the expectations for the quarter, mainly due to the continued cost control and favorable sales mix. On a year-over-year basis, cost control as well as lower E&D and SG&A were more than offset by lower commercial aftermarket and OE sales volume. Pratt & Whitney Sales were of $4 billion, which is down 24% on an adjusted basis and down 25% on an organic basis, a driven by the expected adverse impact of the current environment on the industry.
RTX in the first quarter of FY 21 has reported the adjusted earnings per share of 90 cents, beating the analysts’ estimates for the adjusted earnings per share of 88 cents, according to Zacks Investment Research. The company had reported the adjusted revenue of $15.25 billion in the first quarter of FY 21.
For the second quarter ending in July, Raytheon Technologies expects its per-share earnings to range from 90 cents to 95 cents. The company expects revenue to be in the range of $15.5 billion to $16 billion for the fiscal second quarter. Raytheon Technologies expects full-year earnings to be in the range of $3.50 to $3.70 per share, with revenue ranging from $63.9 billion to $65.4 billion.