Wells Fargo & Co analysts in revising their earnings forecasts for RTX Corp (RTX.US) said that the company's profitability this year may be lower than previously expected.
Futubull learned from analysts at Wells Fargo & Co that when revising their earnings forecasts for aerospace & defense company RTX Corp (RTX.US), they said that the company's profitability this year may be lower than previously expected. This company's business includes Collins Aerospace and jet engine manufacturer Pratt & Whitney.
In a report dated June 28, Wells Fargo & Co analyst Matthew Akers said, "The impact of the reduction in Airbus deliveries by 30 aircraft (about 4%) is still relatively small. We have lowered our 2024 sales forecast for Collins Aerospace by about 2%, and earnings per share for the year will fall by about $0.05."
According to Wells Fargo & Co, this adjustment is because investors are "seemingly concerned" about the jet engine manufacturer, especially after aviation giant Airbus (EADSY.US) lowered its aircraft delivery target for the year from 800 to 770. Compared to engine manufacturers such as GE Aviation (GE.US), RTX Corp can earn more profits from original equipment because Collins Aerospace mainly produces aerospace electric appliances, power systems, and interiors for aircraft production.
Zacks Investment Research estimates that RTX Corp may announce its second-quarter earnings on July 23. This will be the first financial report released by CEO Chris Calio, who took over from former executive Gregory Hayes on May 2.
Wells Fargo & Co said, "Another issue of widespread concern for investors that we have heard is that RTX Corp may lower its 2025 performance guidance based on second-quarter earnings. The second quarter will be Chris Calio's first opportunity to make his mark on the long-term outlook."
In addition, based on 26 times RTX Corp's estimated 2026 earnings, Wells Fargo & Co raised the target price for the stock from $139 per share to $141 per share. In the same report, Wells Fargo & Co raised its profit forecast for GE Aviation for 2024.