Shares of Raytheon Technologies (RTX) - Get Raytheon Technologies Corp Report rose in premarket trading Tuesday after the company reported second-quarter earnings and sales that were ahead of analysts' estimates.
The Waltham, Massachusetts-based defense company reported second-quarter earnings of $1.03 a share on revenue of $15.88 billion. Analysts were expecting earnings of 93 cents on revenue of $15.83 billion.
"Raytheon Technologies delivered strong second-quarter results driven by the growth in our defense businesses and our ability to capitalize on the commercial aerospace recovery," said Raytheon CEO Greg Hayes.
The company said the quarter was so strong that it was raising its adjusted per-share earnings and free cash flow outlook as well as the low end of its sales outlook for 2021.
The company now expects earnings for 2021 between $3.85 and $4 a share, up from between $3.50 and $3.70. Analysts are expecting earnings of $3.82 a share.
Revenue is expected to be between $64.4 billion and $65.4 billion, up from the company's previous view of between $63.9 billion and $65.4 billion. Analysts are expecting revenue of $65.3 billion.
Free cash flow was forecast to range between $4.5 billion and $5 billion, up from $4.5 billion.
"As a result of our industry-leading franchises and differentiated technologies, we generated significant program wins during the quarter that will drive continued top and bottom-line growth well into the future," Hayes said.
Raytheon reported a backlog of $151.8 billion at the end of the quarter, of which $85.7 billion came from commercial aerospace and $66.1 billion was from defense.
Raytheon shares were rising 1.64% to $87.36 early Tuesday.