Raytheon Technologies Corp (RTX) on Tuesday revised down its full-year revenue forecast, citing the loss of sales to Russia after Western sanctions.
The aerospace and defense company now forecasts its 2022 revenue to fall within the range of $67.75 billion and $68.75 billion, compared with a prior forecast of $68.5 billion to $69.5 billion.
According to Raytheon’s Chief Financial Officer Neil Mitchill, the downward revision of the 2022 guidance by $750 million “was strictly related to direct and indirect sales that are no longer allowed because of the global sanctions imposed on Russia.”
Raytheon’s total revenue surged 3% year-on-year to $15.72 billion during the latest quarter, underpinned by air travel demand recovery.
Sales at the company’s Missiles & Defense business shrank 7% compared to the same period a year earlier, while sales at Raytheon Intelligence & Space dropped 5% year-on-year, after the company sold its Global Training and Services business to Vertex Aerospace.
Raytheon reported a net income of $1.08 billion ($0.72 per share) during the quarter ended on March 31st, compared with income of $753 million ($0.50 per share) in the year-ago quarter.
Excluding special items, the firm earned $1.15 per share during the latest quarter, which compares with a market consensus of $1.02 per share.
Raytheon shares closed lower for a fourth consecutive trading session in New York on Tuesday. The stock went down 0.42% ($0.42) to $99.19, after touching an intraday low at $96.78. The latter has been a price level not seen since March 18th ($96.33).
The shares of Raytheon Technologies Corp have risen 15.26% so far in 2022 compared with a 12.40% loss for the benchmark index, S&P 500 (SPX).
Analyst stock price forecast and recommendation
According to TipRanks, all 7 surveyed investment analysts had rated Raytheon Technologies Corp’s stock as “Buy”. The median price target on the stock stands at $118.57.