Raytheon Technologies tops earnings, misses revenue expectations - announces realignment plans

Raytheon Technologies (NYSE: RTX) shares slipped slightly premarket after it reported results for its latest quarter, topping earnings estimates but missing revenue expectations.

The aerospace and defense firm reported fourth-quarter earnings of $1.27 per share, $0.03 better than the analyst estimate of $1.24, while revenue for the quarter came in at $18.09 billion versus the consensus estimate of $18.19 billion.

"Raytheon Technologies delivered solid full-year results with strong free cash flow that exceeded our expectations," said Raytheon Technologies Chairman and CEO Greg Hayes.

Looking forward, the company sees full-year 2023 sales between $72 billion and $73 billion, with adjusted earnings per share from $4.90 to $5.05.

"Our portfolio is well positioned to capture growing demand and we expect to deliver sales growth and margin expansion, along with strong free cash flow generation, in 2023," added Hayes.

The company also announced that it plans to realign its business units. There will be three business segments, including Collins Aerospace, Pratt & Whitney, and Raytheon, with Raytheon stating it plans to implement the reorganization during the second half of 2023.

Christopher Calio, whose role will expand to President and Chief Operating Officer effective March 1, will oversee Raytheon's business transformation initiative.

"In 2023 we will further align our market-leading franchises with customer needs to drive operational agility and excellence," said Christopher Calio, Chief Operating Officer, Raytheon Technologies. "By more fully leveraging our scale, we will deliver enhanced customer solutions and unlock cost savings opportunities with improved resource allocation and a streamlined footprint."

By Sam Boughedda

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