RTX Stock Enjoys Post-Earnings Bump

RTX Corp. (NYSE:RTX) is an Arlington, Virgnia-based aerospace and defense company that provides systems and services for the commercial, military, and government customers in the United States and around the world. Its shares have climbed over 30% in the year-to-date period as of early morning trading on Thursday, July 25, 2024. The stock is up 28% year over year.

The company released its second quarter (Q2) fiscal 2024 earnings on the morning of July 25. In Q2 2024, RTX reported sales of $19.7 billion – up 8% compared to the previous year and posting 10% growth on an organic basis. Meanwhile, adjusted sales climbed 8% year-over-year to $19.8 billion. Adjusted earnings per share (EPS) increased 9% to $1.41. It reported operating cash flow of $2.7 billion and free cash flow of $2.2 billion. Moreover, RTX had a company backlog of $206 billion, which included $129 billion of commercial and $77 billion of defense.

Looking forward, RTX is projecting adjusted sales between $78.75 and $79.5 billion. That is up from a range of $78-79 billion that the company previously provided. Moreover, it expects adjusted EPS between $5.35 and $5.45 – up from the range of $5.25 to $5.40. RTX is projecting free cash flow of approximately $4.7 billion, which is down from $5.7 billion.

RTX is geared up for strong earnings growth on the back of a burgeoning aerospace and defense sector. The stock offers a quarterly dividend of $0.63 per share, which represents a modest 2.2% yield.