Defense contractor Raytheon Technologies Corp. posted higher earnings and revenues in the fourth quarter of 2021 as its commercial aviation businesses strengthened, while its Tucson-based Missiles & Defense unit saw its sales and profit slip.
The company also got some good news Tuesday when the Federal Trade Commission filed an anti-trust lawsuit to block rival Lockheed Martin Corp.โs buyout bid for rocket-engine maker Aerojet Rocketdyne, which Raytheon had opposed as anti-competitive.
Raytheon shares were up more than 1% in midafternoon trading Tuesday on the New York Stock Exchange, though the company missed Wall Street revenue expectations and issued a weaker-than-expected outlook for 2022.
Raytheon reported fourth-quarter sales of $17 billion, up 4% from the same period in 2020, while adjusted net income rose 44% to $1.6 billion, or $1.08 per share.
The results were adjusted for expenses related to United Technologies Corp.โs acquisition of Raytheon Co. to create Raytheon Technologies in April 2020, and for other one-time charges.
The average estimates of Raytheon analysts surveyed by Zacks Investment Research was for adjusted quarterly earnings of $1.01 per share and revenue of $17.2 billion.
Raytheon Missiles & Defense reported fourth-quarter sales of $3.9 billion, down 10% from 2020, while operating profit fell 16% on an adjusted basis to $486 million.
Raytheon said the slip in sales was due mainly to fewer workdays in the 2021 quarter, lower material receipts and expected declines on several foreign production contracts, while profits fell due to lower program efficiencies and lower sales volume.
For all of 2020, the parent company reported sales of $64.4 billion, up 13% from 2020 and just shy of analyst estimates, and adjusted net income of $6.4 billion or $4.27 per share, topping an average estimate of $4.19.
Among other Raytheon units, fourth-quarter sales at Raytheon Intelligence & Space fell 2% while adjusted operating profit rose 11%; Collins Aerospace posted a 13% sales increase and more than a fourfold increase in adjusted operating profit; and sales at engine maker Pratt & Whitney rose 14% while operating profit rose 54%.
The company forecast 2022 adjusted earnings per share in the range of $4.60-$4.80, and revenues between $68.5-$69.5 billion, below analyst estimates.
