Aerospace and defense giant Raytheon (NYSE: RTX) is set to report its second-quarter earnings on Thursday before the market opens.
Last quarter, RTX reported revenues of $22.08 billion, representing year-on-year growth of 8.7%, beating analysts’ revenue expectations.
The company also beat analysts’ EPS estimates last quarter, marking a strong overall performance heading into this latest reporting period.
For the current quarter, analysts are expecting RTX’s revenue to grow 6.2% year on year, a deceleration from the 9.4% growth recorded in the same quarter last year.
Analysts covering RTX have generally reconfirmed their estimates over the last 30 days, suggesting they expect the business to stay the course heading into earnings.
RTX has a notable history of exceeding Wall Street expectations, which adds weight to the market’s generally steady outlook going into Thursday’s report.
Peers in the aerospace and defense sector have already begun reporting Q2 results, offering early signals about broader industry trends and demand conditions.
Northrop Grumman delivered year-on-year revenue growth of 5.1%, beating analysts’ expectations by 0.5%, while AAR reported revenues up 26.1%, topping estimates by 3.9%.
The broader aerospace and defense group has generally underperformed in recent weeks, with share prices down 2.8% on average over the last month amid a choppy macro environment.
Markets have shifted attention across several areas of macro importance, including AI capital spending, geopolitical conflict, interest rates, and the overall health of the economy.
Despite the sector’s broader weakness, RTX has outperformed, rising 6.6% over the last month heading into the earnings release.
The stock currently carries an average analyst price target of $215.36, compared to the current share price of $193.88, suggesting meaningful upside potential according to Wall Street consensus.
