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RTX Corporation (NYSE:RTX) investors will be delighted, with the company turning in some strong numbers with its latest results. The company beat expectations with revenues of US$20b arriving 2.6% ahead of forecasts. Statutory earnings per share (EPS) were US$1.14, 7.1% ahead of estimates. Following the result, the analysts have updated their earnings model, and it would be good to know whether they think there's been a strong change in the company's prospects, or if it's business as usual. We've gathered the most recent statutory forecasts to see whether the analysts have changed their earnings models, following these results.
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Taking into account the latest results, the current consensus from RTX's 21 analysts is for revenues of US$84.2b in 2025. This would reflect an okay 3.0% increase on its revenue over the past 12 months. Per-share earnings are expected to soar 39% to US$4.80. In the lead-up to this report, the analysts had been modelling revenues of US$84.2b and earnings per share (EPS) of US$4.94 in 2025. So it looks like there's been a small decline in overall sentiment after the recent results - there's been no major change to revenue estimates, but the analysts did make a small dip in their earnings per share forecasts.
View our latest analysis for RTX
It might be a surprise to learn that the consensus price target was broadly unchanged at US$140, with the analysts clearly implying that the forecast decline in earnings is not expected to have much of an impact on valuation. There's another way to think about price targets though, and that's to look at the range of price targets put forward by analysts, because a wide range of estimates could suggest a diverse view on possible outcomes for the business. The most optimistic RTX analyst has a price target of US$160 per share, while the most pessimistic values it at US$120. Still, with such a tight range of estimates, it suggeststhe analysts have a pretty good idea of what they think the company is worth.
Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. We would highlight that RTX's revenue growth is expected to slow, with the forecast 4.0% annualised growth rate until the end of 2025 being well below the historical 8.8% p.a. growth over the last five years. By way of comparison, the other companies in this industry with analyst coverage are forecast to grow their revenue at 7.0% per year. So it's pretty clear that, while revenue growth is expected to slow down, the wider industry is also expected to grow faster than RTX.