Raytheon Technologies released its third-quarter earning report Tuesday for both the company overall and its Cedar Rapids-based Collins Aerospace subsidiary.
Overall, Raytheon reported adjusted earnings per share (EPS) of $1.26, exceeding the consensus adjusted EPS estimate of $1.07 and more than doubling the EPS of $0.58 from a year ago. Sales for the quarter totaled $16.21 billion, missing analysts’ estimates by 1.7% but still above the $14.75 billion in sales from the same quarter last year.
Collins Aerospace, a subsidiary of Raytheon Technologies, reported third-quarter sales of $4.59 billion, up 7 percent from the same quarter of 2020. The sales increase was driven by a 38 percent increase in commercial aftermarket sales, which offset a third-quarter decline in commercial operating equipment (OE) and a 5 percent decline in military sales. The increase in commercial sales was driven primarily by the recovery of commercial air traffic, which has resulted in higher flight hours and aircraft fleet utilization, Raytheon said in a news release. However, operating profit was $478 million, a 9 percent drop from the third quarter last year.
Collins reported adjusted operating profit of $480 million for the quarter, up 558% from the prior year, primarily driven by drop-through on higher commercial aftermarket sales volume and favorable mix, according to the company’s news release.
Raytheon also updated its full-year 2021 outlook and now anticipates sales of $64.5 billion, up slightly from the previous estimate; an adjusted EPS of $4.10 to $4.20, up from $3.85 to $4.00, and free cash flow of $5 billion, up from the previous estimate of $4.5 to $5 billion.
“Our performance this quarter clearly demonstrates our ability to capitalize on the increased demand across our commercial aerospace and defense businesses, and our intense focus on cost reduction and operational execution,” Raytheon Technologies chairman and CEO Greg Hayes said in the release. “During the quarter, we announced strategic acquisitions that advance our technology focus areas and made significant progress on several key programs, as evidenced by the successful completion of the first flight test of a scramjet-powered Hypersonic Air-breathing Weapon Concept (HAWC) for DARPA and the U.S. Air Force. Our strong performance this year along with the positive trends in our end markets gives us the confidence to again raise our 2021 adjusted EPS outlook.”