Zacks Equity Research In particular, the significant decrease in air travel resulting from the pandemic is expected to have affected Raytheon Technologies’ airline and airframer customers, and thereby demand for products and services of its Aerospace businesses. The Zacks Consensus Estimate for the company’s second-quarter earnings of 10 cents has declined 66.7% over the past 30 days. That said, at the company level, obviously, part of that’s from RMD and RIS defense side of it, and we’d still think that there’s an opportunity in 2021 to further reduce working capital and adjust more with the demand signals tied to the shape and the cadence of the recovery. Toby will take us through the second quarter results, but given the uncertainties which still exists surrounding the pandemics and its effects, we will not provide a traditional outlook today. It was previously announced, our missiles and defense business was selected by the U.S. Air Force to develop the long range standoff weapon or LRSO. The industry with the worst average Zacks Rank (265 out of 265) would place in the bottom 1%. Raytheon Technologies Corporation (NYSE:RTX) Q2 2020 Results Earnings Conference Call July 28, 2020 8:30 AM ET, Kelsey DeBriyn - Vice President, Investor Relations, Neil Mitchell - Corporate Vice President, Financial Planning and Analysis and IR. A simple, equally-weighted average return of all Zacks Rank stocks is calculated to determine the monthly return. You’re going to see a bigger impact at Collins in the near-term as they are going to be more impacted by the 737 than anybody else? Repair was down like 55%. Date Event description Earnings per share actual Earnings estimate range Previous year's actual; July 28, 2020. Good morning. Pratt and Collins are doing a good job, balancing and managing their supply chain and inputs in a very balanced way taking into account that we need to maintain the health of the supply base. I was wondering if you could maybe in Pratt’s commercial aftermarket down 51. More than initially expected, bringing the full year total cost to approximately $0.16 of a headwind. So, look, I think, as we think about the cost reduction that we saw on the quarter. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. There’s still planes out there flying around and around, again down 50%. Good day ladies and gentlemen. Sources: FactSet, Dow Jones, ETF Movers: Includes ETFs & ETNs with volume of at least 50,000. Ursula, we have time for one more question. So things are on track for that. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating indiv idual securities. There was, of course, significant planning underway before the pandemic and the two teams have come together seamlessly to figure out how we can operate more productively as an organization and how to better serve our customers. Since 1988 it has more than doubled the S&P 500 with an average gain of +24.53% per year. Commercial aftermarket sales were down 48%, driven by a 45% decline in parts and repair, a 57% decline in provisioning and a 45% decline in modifications and upgrades. Real time prices by BATS. But also delivering advanced technologies and innovative products for our customers and working with our suppliers to maintain the stability of the supply chain. Moving on to slide four. And as Toby mentioned, RMD also had a strong book-to-bill ratio in the quarter. We use cookies to understand how you use our site and to improve your experience. Visit performance for information about the performance numbers displayed above. Commercial aftermarket sales were down 51% in the quarter, growth in the GTF aftermarket was more than offset by the impact of a 64% reduction in legacy large commercial engine shop visit inductions and an approximate 40% reduction in Pratt Canada shop visit. So, again, I don’t think there’s been any change beyond -- really beyond the 737 Max. Yeah. Sources: CoinDesk (Bitcoin), Kraken (all other cryptocurrencies), Calendars and Economy: 'Actual' numbers are added to the table after economic reports are released. Adjusted sales of $3.6 billion were down 32% on an organic basis and down 30% on an adjusted basis, also driven primarily by the pandemic’s impact on OEMs and operators. Significant aftermarket volume reductions, fixed cost headwinds and unfavorable military contract adjustments more than offset drop through on higher military sales, cost mitigation actions and slightly lower negative engine margin. Before going through the second quarter results, it’s worth noting that since the merger completed on April 3rd, our second quarter results include legacy Raytheon company from that point forward. You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. It also includes an industry comparison table to see how your stock compares to its expanded industry, and the S&P 500. The guys are looking at it and it’s going to be some tough things to do, but I think this is the opportunity to alter the overhead structure of the commercial arrow businesses. Your next question comes from Robert Spingarn with Credit Suisse. Of note, RIS had over $1.4 billion of classified bookings in the quarter. Copyright 2020 Zacks Investment Research | 10 S Riverside Plaza Suite #1600 | Chicago, IL 60606. As you know, there are a number of factors, some headwinds, some tail winds and the number of unknowns affecting the macro environment and our business going forward. Adjusted sales were $14.3 billion and better than our expectations due to better volume at Collins, Pratt and RMD. We see Collins commercial aftermarket sales down in line with expected RPM declines and the impact of the ADSB mandate headwinds. Obviously, as Boeing has firmed up its 737 Max production schedule. Just wanted to dig in a little bit more on the working capital, so on a net basis including defense, the build was fairly modest in the quarter. The monthly returns are then compounded to arrive at the annual return. Confirm. So I wouldn’t expect that there would be more big charges. To read this article on Zacks.com click here. Remember, we have some below the line items, some of these non-reoccurring items, we’ve got $500 million plus or minus of tax payments on the divestitures that, Greg alluded to in his opening comments, and alike. So if you think about the large commercial aftermarket was down about 55%. I would tell you that, Pratt is fully aligned with Airbus deliveries this year and next year. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Sources: FactSet, Dow Jones, Bonds: Bond quotes are updated in real-time. You may ask further questions by reinserting yourself into the queue as time permits. We have more than 500 synergy projects that we’ve identified and have re-matured [ph]. A quarter ago, it was expected that this an aerospace and defense company would post earnings of $1.11 per share when it actually produced earnings of $1.78, delivering a surprise of 60.36%. But, again, it’s a -- obviously an unusual time in the industry. I wanted to ask about Collins, so the OEM decline somewhere down 53%, obviously, more than, I think, the decline we’re seeing your manufacture production rates. Data are provided 'as is' for informational purposes only and are not intended for trading purposes. So, with that, let me turn it over to Toby. Earnings announcement* for RTX: Oct 27, 2020 Raytheon Technologies Corporation is estimated to report earnings on 10/27/2020. Zacks Rank Education -- Learn more about the Zacks Rank The reported $0.40 earnings per share for the quarter, beating analysts' consensus estimates of $0.10 by $0.30. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. So we’re -- I won’t give you any specifics on any individual customer, but I would just say, we’re trying to be as flexible as we can with payment terms and with cash flow. Raytheon Technologies Corp. (RTX - Free Report) is set to release second-quarter 2020 results on Jul 28, before market open. So, again, we’re taking the actions and we’re really confident we’re going to see these improvements throughout the rest of the year. Take care. And then, Greg, maybe can you touch on the decrementals that we saw at Collins, I know Collins remain profitable, but the decrementals were pretty big. Thank you for listening and stay safe. We’ve talked to every single one of our customers who’s going to be taking GTF powered aircraft and I think we are fully aligned there. We’re going to take some tough cost actions. Again, pretty much as we expected, not as severe, because of course, they don’t have margin on the large engine shipments from an OE point of view. But you can never, if somebody big goes bankrupt, you just don’t feel -- we can’t forecast, right? So, the shares are expected to underperform the market in the near future. And welcome to the Raytheon Technologies second quarter 2020 earnings conference call. Raytheon Technologies (RTX) Surpasses Q2 Earnings and Revenue Estimates, The $12 Trillion "Once-in-a-Lifetime" Market Opportunity Investors Won't Want to Miss, Arabtec shareholders vote to liquidate the Dubai construction firm - email, John McAfee Arrested in Spain on US Criminal Charges, J.P. Morgan Says These 3 Stocks Could Surge Over 100% From Current Levels, #TradeTalks: Retail Trading Trends with TD Ameritrade Clients Increasing their Exposure to the Market, Investing Strategies: CrowdStrike CEO Insights & How To Handle Election 2020 Market Volatility, Trump in High-Risk Group for Serious Covid Consequences: Johns Hopkins, MarketBrief: Managing Volatility in October, What the President's Positive Covid Test Means for the Stock Market, Goldman Sachs Predicts Over 40% Rally for These 3 Stocks, var dom1 = document.querySelector('#form1783 #field1');var field1 = new LiveValidation(dom1, {validMessage: "", onlyOnBlur: false, wait: 300});field1.add(Validate.Presence, {failureMessage:"This field is required"});field1.add(Validate.Format, {pattern: /^([^@\s]+)@((?:[-a-z0-9]+\. Your next question comes from Robert Stallard with Vertical Research. Currently, the Zacks Consensus Estimate for Raytheon Technologies’ earnings is pegged at 10 cents on revenues of $13.98 billion, indicating 95.5% and 28.8% decline from the respective year-ago quarter numbers, which are derived from combining the quarterly figures of legacy Raytheon and United Technologies. RIS reported sales were $3.3 billion, pro forma sales, including the four days stub period were $3.5 billion. We still expect that Pratt Canada will be down in the back half of the year, but not as severely as the large commercial engine business due to the differences in their end markets with business jet and general aviation markets showing better recovery. And why don’t you just give us some color on what it is that those customers are seeking to do to the extent that you’re collecting power by the hour, you have power by the hour arrangements?