: Raytheon’s stock slides premarket after company says it needs to remove Pratt & Whitney engines for inspection after issue with powder metal

Raytheon Technologies Corp.’s stock RTX fell 3.6% in premarket trade Tuesday, after the company beat consensus estimates for the second quarter but lowered its full-year free cash flow guidance as it needs to remove certain Pratt & Whitney engines from service for inspection earlier than expected. The issue “has recently come to light,” the company said in a statement. The engine business has determined that a rare condition in powder metal used to make certain engine parts will require accelerated fleet inspection, it added. “This does not impact engines currently being produced,” said the company. Raytheon had net income of $1.327 billion, or 90 cents a share, for the quarter, up from $1.304 billion, or 88 cents a share, in the year-earlier period. Adjusted per-share earnings came to $1.29, ahead of the $1.18 FactSet consensus. Sales roe to $18.315 billion from $16.314 billion, also ahead of the $17.683 billion FactSet consensus. The company now expects full-year cash flow of about $4.3 billion, down from about $4.8 billion, It expects adjusted EPS of $4.95 to $5.05, compared with prior guidance of $4.90 to $5.05. Sales are expected to range from $73.0 billion to $74.0 billion, up from prior guidance of $72.0 billion to $73.0 billion. The stock has fallen 3.9% in the year to date, while the S&P 500 SPX has gained 18.6%.

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