RTX Sell-Off: Time to Buy the Dip?
It's worse than investors expected and worse than management expected in July. Those are the two primary conclusions from 's (NYSE: RTX) recent presentation on its Pratt Whitney GTF engine fleet update. Is it safe to conclude that the stock is to be avoided, or is this a buying opportunity? Here's the lowdown.
Now, I know you want to get to the update quickly, and you'll find that below if you are in a hurry. Still, here's a quick primer for investors unfamiliar with the issue and those who like to monitor the cadence of management's commentary.
I previously discussed why September was a critical month for investors in the company formerly known as Raytheon Technologies. Back in July, on the second-quarter earnings call, management had promised an update on the longer-term financial impact of its inspection of in-service GTF engines manufactured between the fourth quarter of 2015 and the third quarter of 2021. As a reminder, the GTF is one of the two engine options on the Airbus A320 neo airplane -- the other option is an engine from General Electric's joint venture, CFM International.
Source Fool.com
