Why RTX Stock Is Flying Higher Today

Aerospace giant RTX (NYSE: RTX) reported better-than-expected quarterly results and raised its guidance for the year. Investors are climbing on board, sending RTX shares up 9% as of noon ET.

Commercial aerospace is soaring

RTX, formerly known as Raytheon Technologies, is a maker of commercial aircraft engines and interiors and a major supplier to the Pentagon. The company earned $1.41 per share in the second quarter on revenue of $19.7 billion, easily surpassing Wall Street's consensus estimate of $1.19 per share on sales of $17.8 billion.

Sales were up 10% year over year, and the company generated $2.2 billion in free cash flow. Post-earnings RTX raised its full-year earnings guidance to a range of $5.35 to $5.45 per share, from $5.25 to $5.40 per share. That is well above the $4.95 consensus heading into earnings season. Revenue guidance was raised to $79.1 billion at the midpoint, from $78.5 billion.

"RTX delivered strong operational performance in the second quarter," CEO Chris Calio said in a statement. "The strength in our end markets and first half performance give us the confidence to increase our outlook for adjusted sales and adjusted EPS for the full year."

Pratt & Whitney, the company's jet engine unit, led the way thanks to strong aftermarket, or spare parts, demand.

Is RTX stock a buy?

A year ago this month, all the talk around RTX involved a massive recall of its PW1100G-JM engine that would require a costly fix. The company took more than $5 billion worth of charges related to that issue but appears to have it under control.

The stock fell about 30% in the months that followed the disclosure of that recall but had just about recovered heading into earnings season. Thursday's jump leaves RTX shares about 16% higher than where they were prior to the disclosure.

As conditions normalize, RTX is unlikely to see too many big jumps like today in its future. But the company is a steady performer and a cash generation machine that should continue to benefit from global demand for aircraft equipment.

For those looking for a stable element to add to their portfolio, RTX is once again an attractive option.

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