Raytheon Technologies Corp (NYSE:RTX) is grappling with near-term challenges amid concerns about the Geared TurboFan (GTF) technology and free cash flow issues.
The company is anticipated to report earnings of $1.19 per share for the upcoming quarter, which would be a decrease of 1.7% year-over-year.
However, revenues for the same quarter are expected to be approximately $18.7 billion. This represents a substantial increase of 10.4% when compared to the revenues from the corresponding quarter in the previous year.
The once high-flying RTX, formerly known as Raytheon, has seen its stock decline by 25% since the revelation of critical problems linked to its Geared TurboFan (GTF) technology.
Analysts at UBS believe that the market has priced in an estimated $5.5 billion of free cash flow for 2025, which falls short of the company's guidance of $7.5 billion.
Nevertheless, RTX continues to benefit from robust end markets, supporting a projected 26% compound annual growth rate in free cash flow per share through 2027.
Raytheon is due to report on Tuesday Oct 26. Its shares closed Thursday at $73.89, a decline of 0.5% on the day.