Raytheon Technologies delivered a mixed set of results missing out on Wall Street’s revenue expectations but managed an earnings beat. The company had a strong quarter for commercial aerospace, and it continues to view quite strong demand for its products and services. Labor availability, supply chain, and inflation continue to be near-term constraints. The F135 engine continues to be quite advanced and the safest fighter engine that is ever produced. During the quarter, it was selected by MDA for continuing development of its counter hypersonic missile, which is the first of its kind, the glide phase inceptor. Commercial air traffic demand is continuing to gain momentum. RMD, along with Northrop Grumman, completed the second flight test of the scramjet-powered hypersonic air-breathing defense concept successfully. Structural castings, rocket motors, and microelectronics all continue to pace the manufacturing lines. Raytheon is driving further process improvement, standardization, and automation throughout the company to mitigate inflation headwinds. Among major updates, the company recently acquired Northern Space and Security Ltd., another UK-based company specializing in space domain awareness. The performance in this quarter was driven by the continued recovery of travel by air because of the pent-up demand. We provided the stock of Raytheon Technologies with a ‘Hold’ rating with a revision in the target price.
Our Report Structure:
⦁ Company Overview
⦁ Investment Thesis
⦁ Key Drivers
⦁ Historical Quarterly Statement Analysis – Income Statement & Cash Flows
⦁ Historical Quarterly Balance Sheet Analysis
⦁ Historical Annual Financial Statement Analysis
⦁ Analysis Of Key Financial Ratios
⦁ Financial Forecasts For 3 Years
⦁ Forecasting The Capital Structure & Net Debt
⦁ Discounted Cash Flow Valuation
⦁ Trading Multiples
⦁ Key Risks
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