: RTX stock rallies after adjusted earnings beat Wall Street estimate

RTX Corp. RTX stock is up 7.8% in premarket trades on Tuesday after its adjusted profit beat analyst estimates, it launched an accelerated stock buyback program, and sold a unit for $1.3 billion. RTX swung to a third-quarter loss due to repair costs of $1.53 a share from microscopic contaminants found in Pratt & Whitney turbines and other one-time expenses. The defense contractor said it lost $984 million in the third quarter, or 68 cents a share. In the year-ago quarter, RTX earned $1.39 billion, or 94 cents a share. Adjusted third-quarter profit at RTX totaled $1.25 a share, ahead of the FactSet consensus estimate of $1.22 a share. Revenue dropped 21% to $13.46 billion, including a charge of $5.4 billion related to the previously disclosed Pratt powder metal matter. Analysts expected revenue of just under $18.6 billion. RTX said its board has approved a $10 billion accelerated share repurchase program “commencing almost immediately.” Looking ahead, RTX expects adjusted 2023 profit of $4.98 a share to $5.02 a share, compared to its earlier projection of $4.95 a share to $5.05 a share, and compared to the analyst estimate of $5.01 a share. RTX also said it’s selling its cybersecurity, intelligence and services business within its Raytheon segment for $1.3 billion. RTX did not provide the name of the buyer. RTX was formerly called Raytheon and renaming itself in July.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.