Waltham’s Raytheon lifts full-year profit forecast on commercial travel boost

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Waltham’s Raytheon lifts full-year profit forecast on commercial travel boost

Late on Tuesday, Raytheon Technologu Corp., a major US defence contractor headquartered on Waltham, Massachusetts, had revealed quarterly earnings’ report for fiscal first quarter of the year that ended on March 31, while the US aerospace and weapon manufacturer had topped analysts’ estimates for operational profits.

On top of that, Raytheon had also uplifted its lower margin of full-year sales forecast, mostly riding on the back of a stronger-than-anticipated performance on its defence unit alongside a growing optimism over a recovery in commercial air travel during second half of the year.

Meanwhile, as a robust performance in Raytheon’s defence unit, accounts for more than a half of overall sales of the defence and aerospace giant, appeared to have offset a long-running demand-crunch on its aviation technologies and aircraft manufacturers’ services, the Waltham-headquartered US defence contractor’s newly appointed CFO (Chief Financial Officer), Neil Mitchill, said in a post-earnings’ conference call with the reporters, “Increasing confidence and a commercial aero recovery that we began to see take hold at the end of the first quarter led to the company's view for 2021”.

Raytheon lifts full-year profit forecast, shares soar

Concomitantly, according to Raytheon’s quarterly earnings’ report released late on Tuesday, the American defence contractor had posted a net income of $753 million or 50 cents a share in the quarter that ended on March 31, compared to a loss of $83 million or 10 cents a share registered at the same time a year earlier.

Besides, over the latest quarter, Raytheon’s revenue surged to $15.25 billion from a $11.36 billion on an annualized basis, while its earnings per share stood at 90 cents per share, beating Wall St. estimates of 88 cents.

Apart from that, Raytheon had also lifted its full-year profit forecast for 2021 as beforementioned, while the company was expecting a full-year sales figure between $63.9 billion and $65.4 billion, compared to a prior estimate of $63.4 billion to $65.4 billion.

Followed by a fairly upbeat quarterly earnings’ report, shares’ prices of NYSE-listed Raytheon Technologies Corp. wrapped up Wednesday’s Wall St. 0.33 per cent higher to $83.08 a share after rising as much as 2.25 per cent in pre-market trading.