Raytheon Raises Outlook: Sees FY23 Adj. EPS $4.95-$5.05 (Up From $4.90-$5.05 Prior) vs. $5.02 Estimate, Sales $73B-$74B (Up From $72B-$73B Prior) vs. $72.73B Estimate
Portfolio Pulse from Benzinga Newsdesk
Raytheon Technologies (RTX) has raised its FY23 outlook, citing accelerating demand in global commercial aerospace and strong defense spending. The company now expects sales of $73-74 billion, up from the previous estimate of $72-73 billion, and adjusted EPS of $4.95-$5.05, slightly up from the previous $4.90-$5.05. However, free cash flow is expected to decrease to $4.3 billion from $4.8 billion due to an issue requiring Pratt & Whitney to remove certain engines from service for inspection earlier than expected.
July 25, 2023 | 10:58 am
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POSITIVE IMPACT
Raytheon's raised FY23 outlook could positively impact its stock price in the short term. However, the decrease in expected free cash flow due to Pratt & Whitney's engine issue could offset some of this positive impact.
The raised outlook indicates strong performance and demand, which is typically a positive signal to investors and could drive the stock price up. However, the decrease in expected free cash flow due to an issue with Pratt & Whitney, a subsidiary of Raytheon, could be a concern for investors and potentially limit the stock's upside.
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