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Raytheon Technologies Corp RTX

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Morningstar’s Analysis

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1-Star Price

PREMIUM

5-Star Price

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Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Raytheon Technologies Rides an Improving Commercial Aftermarket In Q3; Increasing FVE

Burkett Huey, CFA Equity Analyst

Analyst Note

| Burkett Huey, CFA |

Wide-moat-rated Raytheon Technologies posted a solid third quarter as the aftermarket recovery for narrowbodies continued throughout the summer. Sales of $16.2 billion missed Factset consensus by 1.1% but adjusted EPS of 1.26 beat FactSet consensus by 16.0%. We are increasing our fair value to $85 per share from $83 to reflect the time value of money and slightly updated working capital assumptions.

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Company Profile

Business Description

Raytheon Technologies is a diversified aerospace and defense industrial company formed from the merger of United Technologies and Raytheon, with roughly equal exposure as a supplier to the commercial aerospace manufactures and to the defense market as a prime and subprime contractor. The company operates in four segments: Pratt & Whitney, an engine manufacturer, Collins Aerospace, which is a diversified aerospace supplier, and intelligence, space and airborne systems, a mix between a sensors business and a government IT contractor, and integrated defense and missile systems, a defense prime contractor focusing on missiles and missile defense hardware.

Contact
870 Winter Street
Waltham, MA, 02451
T +1 781 522-3000
Sector Industrials
Industry Aerospace & Defense
Most Recent Earnings Sep 30, 2021
Fiscal Year End Dec 31, 2021
Stock Type Cyclical
Employees 181,000

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