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Highlights
- Raytheon Technologies Corporation (NYSE: RTX, RTX: US) and Lockheed Martin Corporation (NYSE: LMT, LMT: US) is creating a lot of buzz on the stock markets.
- Raytheon, a diversified aerospace and defence business, reported a four per cent year-over-year (YoY) increase in sales in Q4 FY2021.
- Lockheed posted a net sales of US$ 17.72 billion in Q4 FY2021 compared to US$ 17.03 billion in Q4 2020.
Raytheon Technologies Corporation (NYSE: RTX, RTX: US) and Lockheed Martin Corporation (NYSE: LMT, LMT: US) is creating a lot of buzz on the stock markets.
The interest around these aerospace corporations seems to have been triggered after China announced earlier this week that it plans to place sanctions against the two American defence giants.
This move reportedly came in response to the two US defence contractors’ arms sales to Taiwan.
Amid this development, let’s find out how the two defence companies have been performing.
Raytheon Technologies Corporation (NYSE: RTX, RTX: US)
Raytheon is a Waltham, Massachusetts-based company with a diversified aerospace and defence business that offers advanced systems and services. The integrated defence company reported a four per cent year-over-year (YoY) increase in sales to US$ 17.04 billion in Q4 FY2021.
Raytheon also more than tripled its net income to US$ 685 million in the latest quarter, up from US$ 146 million a year ago.
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The US$ 140-billion market cap company is set to pay a quarterly dividend of US$ 0.51 apiece on March 24.
Stocks of Raytheon Technologies grew by over 21 per cent in the last 12 months. RTE stock closed at US$ 94.25 apiece on Thursday, February 24, with 9.7 million shares switching hands during the session.
Lockheed Martin Corporation (NYSE: LMT, LMT: US)
Lockheed Martin Corporation is a Bethesda, Maryland-based company known for its fighter aircraft in the western markets. The US$ 107-billion market cap firm offers rotary and mission systems, missile defence and space systems.
Lockheed posted net sales of US$ 17.72 billion in Q4 FY2021 compared to US$ 17.03 billion in Q4 2020. Its fourth-quarter net profit was US$ 2.04 billion in 2021, up from US$ 1.79 billion a year ago.
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Lockheed is also scheduled to pay a quarterly dividend of US$ 2.80 apiece on March 25.
Stocks of Lockheed closed at US$ 395.71 apiece on Thursday, noting a trading volume of 4.1 million shares. LMT stocks have climbed up by over 15 per cent in the past one year.
Bottomline
The new sanctions issued by the Chinese government can impact the businesses of Raytheon and Lockheed Martin, hence, investors should ideally make careful assessment of the two companies.
Also, with the ongoing Russia-Ukraine turmoil, this move has triggered some concerns about the probability of a Chinese invasion of Taiwan, as Beijing is said to have initiated military activity around the island.
