RTX Corp (NYSE:RTX) stock is up 1.9% to trade at $195.78 today, after the defense contractor reported better-than-expected third-quarter results and raised its full-year outlook. RTX posted adjusted earnings of $2.26 per share on revenue of $24.97 billion, topping estimates of $1.78 per share and $24.03 billion, respectively. The company also cited growing international demand amid increased defense spending across Europe, Asia-Pacific, and the Middle East.
Analysts have yet to chime in following the results. Of the 26 brokerages in coverage, 17 carry a "buy" or better rating, while eight recommend "hold" and one maintains a "strong sell" rating
RTX is extending a bounce off the $180 level, after pulling back sharply from its Aug. 10 record high of $226.88. Today's pop has the shares breaking above the 160-day moving average, which provided pressure over the past few sessions. Year over year, the equity is up roughly 20%.
Options traders are responding bullishly to today's earnings report. RTX's options order flow shows a net positive delta volume of 35,391 shares, with bullish pressure accounting for 62.9% of the activity compared to 37.1% bearish.
RTX sports a Schaeffer's Volatility Scorecard (SVS) of 89 out of 100, indicating the stock has consistently exceeded options traders' volatility expectations during the past year.
