RTX Corporation Quarterly Earnings Preview

RTX Corporation Quarterly Earnings Preview

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RTX Corporation Quarterly Earnings Preview

Summary

RTX Corporation Quarterly Earnings Preview

RTX Corporation (NYSE:RTX) is expected to report an EPS of $1.45 and revenue of $20.67 billion for Q2 2025. The anticipated revenue represents a 4.8% increase year-over-year, driven by strong sales in the commercial engine and aftermarket sectors. Despite a slight decrease in EPS estimates over the past 60 days, RTX's financial metrics indicate a strong market position with a P/E ratio of 44.04 and a debt-to-equity ratio of 0.67.

RTX Corporation, a major U.S. defense contractor, is gearing up to release its quarterly earnings on July 22, 2025. Analysts expect the earnings per share (EPS) to be $1.45, with revenue projected to reach approximately $20.67 billion. RTX is known for its strong presence in the defense sector, with significant contributions from its Pratt & Whitney and Collins Aerospace divisions.

The anticipated revenue of $20.67 billion for the second quarter of 2025 represents a 4.8% increase from the same period last year, as highlighted by the company's strong sales momentum in its commercial engine and aftermarket sectors. This growth is a positive indicator of RTX's ability to capitalize on market opportunities and expand its business operations.

Despite the positive revenue outlook, the EPS estimate has seen a slight decrease of 0.7% over the past 60 days, reflecting a cautious approach by analysts. This revision is important as it can influence investor sentiment and potentially affect the stock's short-term price performance. The EPS is still expected to show a 2.8% increase compared to the previous year, indicating steady growth.

RTX's financial metrics reveal a price-to-earnings (P/E) ratio of 44.04, suggesting that investors are willing to pay a premium for each dollar of earnings. The company's price-to-sales ratio of 2.48 and enterprise value to sales ratio of 2.92 highlight its market valuation relative to sales. These figures indicate a strong market position, although the premium valuation may raise concerns among some investors.

The company's debt-to-equity ratio of 0.67 suggests a moderate level of debt compared to equity, which is a positive sign of financial stability. Additionally, the current ratio of 1.01 indicates RTX's ability to cover its short-term liabilities with its short-term assets. These financial metrics provide a comprehensive view of RTX's financial health and its position in the market.

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