Raytheon Technologies (RTX) - Get Free Report shares were trading lower Tuesday after the aerospace and weapons maker reported strong earnings but missed on analysts' revenue expectations for the third quarter.
Raytheon reported earnings of $1.26 per share on revenue of $16.2 billion. Analysts were expecting earnings of $1.09 per share on revenue of $16.4 billion. Net income came in at $1.4 billion in the quarter, with adjusted net income of $1.9 billion.
"Our performance this quarter clearly demonstrates our ability to capitalize on the increased demand across our commercial aerospace and defense businesses, and our intense focus on cost reduction and operational execution," said CEO Greg Hayes.
The company said that recovering demand for air travel has helped drive demand for the company's aircraft cabin interiors and engines.
Raytheon also told Reuters that the U.S. government's decision to open its borders to vaccinated individuals points to a recovery of the wide-body aerojet aftermarket.
Raytheon expects 2021 earnings between $4.10 and $4.20 per share, up from a previous forecast between $3.85 and $4 per share.
The company says that while it faces supply chain challenges among its 13,000 suppliers, the issues come down to "some very acute issues," according to Reuters.
"We're seeing some shortfalls in electronic components, connectors, things like that. We're not as exposed like the auto industry is to the chips," Mitchill said.
The company's stock took a hit in late September after British engineering group Rolls-Royce won a contract over Raytheon to build new engines for the U.S. Air Force's B-52 Stratofortress bomber.
At last check, Raytheon shares were down 0.77% to $90.60 in premarket trading.