Key Stats for RTX Stock
- Price change for RTX stock: -4%
- $RTX Share Price as of Apr. 21: $187
- 52-Week High: $215
- $RTX Stock Price Target: $216
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What Happened?
RTX (RTX) stock fell despite a strong earnings beat, as investors focused on tariff headwinds and fading geopolitical tailwinds.
The results themselves were impressive.
- Adjusted EPS came in at $1.78, beating the $1.52 analyst estimate.
- Revenue hit $22.1 billion, ahead of the $21.5 billion forecast, up 10% organically year-over-year.
- The company raised its full-year adjusted EPS guidance to $6.70 to $6.90, up from the prior range of $6.60 to $6.80.
- Full-year revenue guidance was also lifted to $92.5 to $93.5 billion. Free cash flow guidance stayed unchanged at $8.25 to $8.75 billion.
Backlog hit a record $271 billion, up 25% year over year. That includes $162 billion in commercial aerospace and $109 billion in defense. Book-to-bill for the quarter was 1.14, meaning RTX is winning new orders faster than it ships.
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What the Market Is Telling Us About RTX Stock
The selloff in RTX stock isn’t really about the fundamentals. Management flagged an estimated $850 million tariff impact for the year, which spooked some investors.
On top of that, signs of a potential ceasefire in the US-Iran conflict reduced some of the geopolitical premium that had been supporting defense stocks.
Still, the underlying business looks solid.
- Raytheon was the standout, with munitions output up over 40% year-over-year.
- Defense orders topped $6.6 billion in the quarter alone, and
- Raytheon’s book-to-bill over the trailing 12 months was 1.48.
- The company has also signed five landmark framework agreements with the Department of War for critical munitions, including Tomahawk, AMRAAM, and the Standard Missile family.
On the commercial side, Pratt & Whitney’s aftermarket grew 19%, and GTF MRO output was up 23%.
Aircraft on ground due to powder metal issues fell 15% from year-end, a meaningful improvement. Collins also posted excellent commercial OE growth despite tariff headwinds.
For long-term investors in RTX stock, this quarter reinforced the view that the company has real demand across both defense and commercial aerospace, with strong visibility into a record backlog.
The near-term noise from tariffs and geopolitics may be creating a buying opportunity in a high-quality business.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
