Why RTX Stock Is Flying Higher Today

Shares of RTX (NYSE: RTX) are jumping Tuesday. The firm's stock gained 2.5% as of 12:50 p.m. ET, but was up as much as 6% earlier in the day. The leg up comes as the S&P 500 (SNPINDEX: ^GSPC) and Nasdaq Composite (NASDAQINDEX: ^IXIC) gained 0.7% and 1.6%, respectively.

RTX -- formerly known as Raytheon -- reported earnings early Tuesday. The numbers were received relatively well, although investors may have hoped for slightly stronger guidance for the company.

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Q4 was kind to RTX

Amidst what RTX president and CEO Chris Calio called "unprecedented demand," RTX delivered strong growth for both the quarter and fiscal year 2024 as a whole. The company boosted sales 9% year over year (YOY) for Q4 and delivered an adjusted earnings per share (EPS) of $1.54, up 19% YOY. Wall Street was expecting an adjusted EPS of $1.38 for the quarter. RTX handily clearing that bar impressed investors.

For 2024 as a whole, the company reported $80.7 billion in sales, up 9% YOY, as well as an adjusted EPS of $5.73, up 13% YOY, also exceeding Wall Street's targets.

2025 leaves something to be desired

However, despite the better-than-expected growth last year, the company set guidance for 2025 that underwhelmed investors. RTX set a sales target range of $83 billion to $84 billion for 2025, the high point of which is $500 million lower than what Wall Street was projecting. This slightly lower guidance is why, despite delivering such a strong Q4 and 2024, shares of RTX jumped higher Tuesday more modestly than might otherwise be expected.

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Johnny Rice has no position in any of the stocks mentioned. The Motley Fool recommends RTX. The Motley Fool has a disclosure policy.