Defense giant RTX (RTX), formerly Raytheon Technologies, reports Q2 results early Tuesday. RTX stock is basing ahead of earnings. Meanwhile, the Senate is scheduled to debate its version of the defense spending bill this week.
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The missile and F-35 jet fighter components maker, which recently changed its name from Raytheon Technologies, reports after rival Lockheed Martin (LMT) topped estimates for its Q2 results last week.
Analysts expect RTX earnings growth to decelerate for the second quarter in a row, ticking up 1.7% to $1.18 per share while revenue rises 8.3% to $17.68 billion.
Wall Street forecasts a 12.4% sales jump in the company’s Collins Aerospace business to $5.63 billion while Pratt & Whitney revenue rises 13.4% to $5.63 billion. The Raytheon Intelligence & Space and Raytheon Missiles & Defense businesses will merge under the Raytheon name in the second half of the year as part of a reorganization announced in January.
Defense Spending Vote
Elsewhere, the Senate began taking up the National Defense Authorization Act on July 18. A final vote for the NDAA bill has not yet been scheduled but could happen sometime this week, CNN reported, as the Senate aims to pass its version of the NDAA this month. The two chambers of Congress will negotiate a compromise later this year.
The $886 billion NDAA defense spending bill narrowly passed the House of Representatives along party lines in a 219-210 vote on July 14. Four Republicans opposed the bill while four Democrats supported it.
The NDAA included a 5.2% pay raise for military members, initiatives to counter China and an additional $300 million for support to Ukraine. The spending plan also increases investments in fifth and sixth generation aircraft such as the F-35.
It also contained measures to block Pentagon policies that reimburse travel costs for troops seeking abortion, ends coverage of hormone treatment and transition surgeries for transgender troops, slashes diversity and inclusion programs, and limits specific flags that can fly at military installations.
The Democrat-controlled Senate is broadly expected to reject the conservative social stipulations included by House Republicans. So far, senators proposed more than 800 amendments to the bill and more are likely, according to reports.
RTX Stock
RTX stock edged up 0.64% to 97.01 Monday. Shares are trading in a flat base with a 104.91 buy point. The current buy zone for the pattern extends to 110.15.
RTX stock is trading around all its moving averages. RTX stock has declined about 3.9% so far this year.
You can follow Harrison Miller for more stock news and updates on Twitter @IBD_Harrison
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Source: https://www.investors.com/news/rtx-stock-raytheon-earnings-senate-debates-defense-bill/?src=A00220&yptr=yahoo