U.S. aerospace manufacturer Raytheon Technologies Corp (RTX.N) on Tuesday raised its full-year profit forecast and beat quarterly expectations on the back of higher demand for its commercial engines, spare parts and aftermarket services.
Shares of the company, which posted a rise in revenue in all four of its units, were up more than 3.5% in early trading.
As demand for travel returned quicker than expected, airlines have rushed to return planes to skies and recall crews, boosting revenue at its Collins Aerospace and Pratt & Whitney units by 6% and 19%, respectively, on an adjusted basis.
“The better than expected result at Collins bodes well at this early stage of the aviation recovery,” Vertical Research Partners analyst Robert Stallard said in a note.
Raytheon now expects full-year earnings of $3.85 and $4.00 per share, above its previous forecast of $3.50 and $3.70.
The Waltham, Massachusetts-based company also raised the lower end of its fiscal year revenue forecast to $64.4 billion from $63.9 billion. The upper end of the outlook remains at $65.4 billion.
On an adjusted basis, it earned $1.03 per share in the second quarter ended June 30, beating analysts’ estimate for a profit of 93 cents per share. Net sales rose 13% to $15.88 billion and also topped estimates.