RTX Earnings: Turbine Disks Will Take Time to Fix, Progress Seems Steady; Valuation Up $3 to $115

RTX announced first-quarter 2024 results that were very close to our expectations, with one exception: revenue at Pratt & Whitney outpaced our forecast because the firm accelerated deliveries of new GTF engines in the quarter. So far, wide-moat RTX seems to have contained the financial fallout from its metallurgy-related recall of GTF engines, though the maintenance plan won't conclude for a few more years. We haven't altered our long-term forecasts, and our fair value estimate has increased to $115 from $112, primarily for the time value of money and the firm's slightly lower share count since the end of 2023.