RTX Corp (NYSE:RTX, ETR:5UR) shares plunged after the defense and aerospace company warned that recently announced tariffs may negatively impact its full-year performance. The company expects adjusted sales in the range of $83 billion to $84 billion and adjusted earnings per share (EPS) between $6 to $6.15 for 2025, but noted that this does not include the potential impact of tariffs.
Shares of RTX Corp (NYSE:RTX) are down 9% at $114.75 at last glance, despite the firm's better-than-expected first-quarter earnings and revenue.
Shares of RTX (RTX) slumped Tuesday as the defense contractor warned new Trump administration tariffs will impact results. Rival Northrop Grumman (NOC)'s stock also dropped sharply on costs related to the B-21 bomber.
Although the revenue and EPS for RTX (RTX) give a sense of how its business performed in the quarter ended March 2025, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.
Aerospace giant RTX said it expects a $850 million impact from tariffs, while GE estimated about $500 million. GE Aerospace's CEO, Larry Culp, said he recently met with President Donald Trump.
RTX (RTX) came out with quarterly earnings of $1.47 per share, beating the Zacks Consensus Estimate of $1.35 per share. This compares to earnings of $1.34 per share a year ago.
The aerospace and defense company's sales outlook misses Wall Street forecasts.
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RTX Corp. is expected to continue its positive earnings streak, but markets will scrutinize its backlog amidst tariff pressures. The company's Commercial business faces growth challenges due to lingering issues with its P&W GTF engines, possibly impacting its dominant share in the narrow-body aircraft market. RTX's Defense segment shows robust growth, driven by strong contract wins, particularly in the Patriot and F135 programs.
Investors interested in buying RTX stock should wait until April 22, considering its premium valuation and low Return-on-Equity.
Nvidia (NVDA -7.03%) has now filled out its lineup of Blackwell-based gaming graphics cards with the unveiling of the RTX 5060 and RTX 5060 Ti. Two variants of the RTX 5060 Ti are available now, priced at $379 and $429, while the cheaper $299 RTX 5060 goes on sale in May.
In the most recent trading session, RTX (RTX) closed at $129.25, indicating a +0.47% shift from the previous trading day.