RTX Corp. Q4 Earnings Analysis
RTX shares are trading higher after the company’s most recent earnings report reflected strong growth in the fourth quarter. The Aerospace & Defense company reported $1.29 in EPS and $19.7B in revenue, both above analyst expectations. Defense spending has sharply increased in the last 24 months, leading companies like RTX to more contracts. The biggest takeaway wasn’t in what they did last quarter, but what they expect to do in 2024. The company raised guidance for the year ahead, which is likely the main reason why markets are so excited.
The post-earnings power gap-up moved the stock’s daily candle above the 200 day moving average (not shown in chart above). Institutional investors and traders watch the 100/200 MA lines closely to determine a stock’s trend. Now that RTX is above both lines, and has delivered strong earnings, it can see more upside in the year ahead. We’re looking for a move above 92.50 next for a price target of 96.00 to start. Keep in mind that buyers need RTS to hold a level around 88.00 to maintain strength.