What happened to RTX on its earnings day

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It seems like RTX’s troubles have been a boost to some of their key competitors, being both General Electric and Boeing. This is from the fact that yesterday RTX reported less than favorable news during their earnings report when their business Pratt & Whitney found there was a problem with some of their engine parts that will require an inspection. They said that this will not affect any engines currently in production. But many investors overall did not take this news lightly as the company significantly sold off more than 10% especially due to the fact that it cut their Free cash flow by 500 million in order to perform the inspection over the upcoming year. And with GEs earnings also that showed a potential bright future after years of troubles. Ge was able to beat its earnings with EPS 68 cents vs the estimates of 46 cents and revenue that also beat due to the fact of their aerospace side being extremely successful, and their energy side also following. And Boeing reported this morning that they are having success with the commercial markets picking up and their aerospace side is also performing well, giving them over a 3% boost this morning.

This overall looks like the aero industry is picking back up with companies like GE and Boeing benefiting from their earnings, while others like RTX presents okay earnings with some worries along with it. But from what we’ve seen at The FatNarwhal RTX’s earnings over time after some of these problems start to pass could be a potential cheap option into the Aerospace market. But right now, their engines are going to affect them a significant amount as companies like Airbus are large buyers of them and airlines now have worries of RTX in mind.